Tuesday, July 29, 2008

Tuesday's Trade - Deja Vu

For the second day in a row, traders fading extreme trends got hammered much of the day ... especially into the close. We did get a bit of the expected early morning post-trend chop, although the VIX warning sign was out pretty early in terms of a less likely return to Monday's lows and a possible strength day.

Here? It took me a full day and a half to finally match the rhythm of the market and I had a decent afternoon buying dips in the clear uptrend and strength. Yet it was again tough for me to load the boat with size given the lack of stellar entries with markets at overextended intraday levels. Trade of the day for the second day in a row was entering on the pre-3pm power trend pullback, yet I kept size modest in case the market pulled in toward the close. Talk about deja vu with that 2:45pm pullback.

Frankly treading water a bit with two extreme back-to-back trend days, as it's been an intraday swing trader market [not my strength]. Reads have been OK, but execution not consistent enough for me in terms of matching the market's pulse.

So call it two at-bats and two walks heading into the week's middle innings with confidence. Eying the first strong pullback in the morning to lean into one, but will re-evaluate as the game plays out.


MK said...

I like your journal Don - thank you for sharing it. I am finding it inspirational for my own development. I'd wish you luck on reaching your end of year goal, but I don't think you need it. You are showing some creative, and IMHO, exceptional self-management.

With kind regards,

Don Miller said...

Thanks MK. I'll still take some "luck" now and then :-). See you around the blog. Don