11-20-2006 Trade Review of the Day

Gap Fill after Lack of Downward Followthrough

Since I only made 1 trade today, I thought I’d consolidate tonight’s posts. This was definitely the quickest I have ever hit my Net Daily Goal as I was in and out within a few minutes after the market opened.

This morning we saw a gap down on the Russel 2000 Futures by about 2 ER2 points. At this point I was actually thinking that if the 15 minute bar could close lower then we’d be in for a bearish looking day. But the NYSE-TICK was acting surprisingly resiliant despite an early flurry of selling. Sure it was decreasing, but it was still in positive territory.

Then came a beautiful 55-tick TRIX Divergence (TXD+) almost completely concurrently with a Positive Trendline cross (TL+). Those 2 things combined with the non-negative TICK was enough for me to test the waters so I went long at 789.00.

A few minutes later I closed out the position achieving my N.D.G. at the pre-market price-pivot. Its hard not to feel a little bit guilty after morning’s like this morning, but then I come to my senses because for every day like today I know that there will likely be a long trendless drudgery of a day ahead so I’d better enjoy these gifts when I can.

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