My New Best Friend
And that is why we always always and always rely in price – the ultimate denominator. Repeat after me – I will never argue with price – I will never argue with price! Quite frankly half a lifetime ago when I was a lesser trader my ego may have led me into taking out short positions yesterday. But like so many of you I had to learn certain lessons the hard way – meaning I had to pay the price for stroking my own ego and thinking that the market would ever care about my silly little charts. Strangely enough, since I adopted a position of acquiescence to the dicate of price my charts over time started to pay off.
So let’s say hello to our new best friend – Mr. Diagonal which has been serving as a perfecto jumping board for the past two weeks. To repeat yesterday’s sentiment: “Still looking supportive and as long as this diagonal holds take anything below with consideration.”
Well, there still is the matter of this. And it’s the reason I would be extremely interested in taking in short position if price would show any signs of weakness. Alas we have to wait and that may be a good thing. I would love to buy some vega with the VIX trading below the 13 mark. Hey, it was on my Christmas list after all!
Cotton update: Not sure how many of you used the ST panel to get positioned on the 11th. Since then it’s been going gangbusters and if you followed me into this abyss I would suggest you take profits now.
I hate to quote myself again (not really) but here it is from yesterday’s update: ”Copper looking bearish – today’s drop through the 100-day would usually put me into a short position. But considering the weekly panel I would wait for a drop below the 25-week SMA.” And that, ladies and leeches, is why I correlate different time frames
Natgas – didn’t see this coming but my sleepy early morning entry turned gangbusters a short while after. Take profits now unless you want to hold this one all the way on the daily.
Bonds update – yesterday’s entry at the diagonal. It was speculative but sometimes it’s better to be lucky then good, right?
Some very juicy setups lurking below – please follow me into my winter lair:
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This entry was posted on Thursday, January 17th, 2013 at 2:20 pm. Both comments and pings are currently closed.