This morning I opened a long position right before the markets decided to roll over. I'm currently down over 20% in my current open trade.
The market up move this morning appears to be just a head fake and it looks like we still have some downside left in this current move. We have blown right through support 1 and 2 and it looks like we may end up around $46.95-47 before we make the next move up. The monthly trend is still pointing up and we are getting close to getting a sign of a bottom on this current weekly trend down. I'm thinking we will see somewhere above $50 on the Q's before the September contracts expire.
I'm currently not going to sell my open position since we are very close to this short term bottom and we still have plenty of time left in these September contracts. I will probably also purchase more once I see a change in the trend on my charts.
This is another example why if you are not watching the market on a regular basis, you can easily get fooled by these types of moves. I'm glad I went in light on this trade.
On an unreleated note, I have been testing the Think or Swim platform recently for my trading. ToS currently powers the OptionsXpress charting platform, so the change to this platform was an easy move. One added benefit is they make it very easy to generate charts that I can post on the website. Here is the chart I'm currently following. I'm closely following the Stochastic now to see it make a change in direction towards the upside for my next buy.
The market up move this morning appears to be just a head fake and it looks like we still have some downside left in this current move. We have blown right through support 1 and 2 and it looks like we may end up around $46.95-47 before we make the next move up. The monthly trend is still pointing up and we are getting close to getting a sign of a bottom on this current weekly trend down. I'm thinking we will see somewhere above $50 on the Q's before the September contracts expire.
I'm currently not going to sell my open position since we are very close to this short term bottom and we still have plenty of time left in these September contracts. I will probably also purchase more once I see a change in the trend on my charts.
This is another example why if you are not watching the market on a regular basis, you can easily get fooled by these types of moves. I'm glad I went in light on this trade.
On an unreleated note, I have been testing the Think or Swim platform recently for my trading. ToS currently powers the OptionsXpress charting platform, so the change to this platform was an easy move. One added benefit is they make it very easy to generate charts that I can post on the website. Here is the chart I'm currently following. I'm closely following the Stochastic now to see it make a change in direction towards the upside for my next buy.
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