I had to kick that mythical German discipline into overdrive today as I kept tripping over juicy looking but yet immature setups. Practice what you preach they say. If you read yesterday’s post then you recall my thoughts on why premature (discretionary) entries can lead to early stop outs, that they will affect your position sizing, and that they affect you psychologically if you let them. Another perhaps more obvious aspect I didn’t delve into was the fear of missing out, a.k.a. greed’s ugly cousin.
Last week’s gap upwards has left market participants catching their breath and looking for a sign of future direction. As we are near all time highs there isn’t much technical context to hang our hats on, and until new context is established everyone is kind of stuck in limbo. Of course withholding new context by keeping the tape inside a narrow range is a great opportunity for market makers to make some easy money by bitch slapping over eager participants around a bit.
Sorry lads (and ladies), we’re not going to talk about thigh gaps today although it may easily double traffic numbers here. Instead we’re up for another lesson in tape reading but I think it’ll be very worth your while. So, courtesy of our croissant dipping friends in France we all were bestowed with a fairly large opening gap across U.S. equities on Monday morning. Now opening gaps, especially in equities, often have a nasty habit of filling shortly thereafter, which then offers participants a tasty inflection point for getting positioned.
I was recently encouraged by a reader to move my entire domain to SSL which was something I had been planning for a quite a while but kept forgetting due to my ever growing workload. However then Google suddenly sends me a notification yesterday which stated that any pages with password fields served via HTTP are going to flag a warning, starting… and get this: January 1st, 2017. Well, thanks a lot Google for the timely reminder!