Fade The Close

UPDATE 9:30am EDT: Alright we just opened about 15 points down, despite extremely bullish breadth numbers last night exceeding a 7:1 advancing ratio. Let me share something with you guys:

Do we see a pattern here? This market has been reduced to one big gotcha! game. In the last 5 days we got a long inverse candle following the close every friggin’ time. Now, as you guys know I’m not exposed to this crap so I probably shouldn’t care. However, just looking at this is frustrating to me, quite frankly and although the long term trend looks pretty obvious on a daily chart the intra-day action has been tantamount to sticking you toe into a wood shredder. I think even 2008 was easier to trade than this shit.

The good news is that the directed trading strategy I’m preparing has been breezing through all this with flying colors. The last few days have been great – profit curve is pointing straight up – I think this was a great acid test. Not that 2 years of continuous profits wouldn’t have been enough supporting evidence already 😉

Patience is the ultimate virtue when it comes to trading. It’s easy to get frustrated when the tape starts to paint what we see above. My home made remedy is to focus on other things and let things take their course. Again, once we’ll have a good entry, we’ll know it – trust me.

Another thing – I was getting a bit riled up last night about the ‘faux EWT’ affair. As I said – I strongly encourage intelligent discourse, but when following the comment stream lately it seems that everyone is busy offering their own count – seems the goal is to somehow compete with me and prove me wrong. In the past few days I didn’t see one comment even referencing my count – instead I see plenty of responses to what everyone else has to offer. So, I have to think – if nobody even wants to discuss my work then I don’t really feel incentivized to put in all those hours to put it all together. Do you rats have any idea how much time I’m spending on this?

Another example of this were the option strategies I posted yesterday. One of the few people who responded was fujisan, the rest of you were busy chatting amongst yourself – the topic at hand was completely ignored.

So, forgive me if I am probably going to quiet things down today ahead of the weekend – I might even take the entire weekend off and come back on Monday. I don’t see a good entry anyway unless we drop another 15 – 20 points, plus I think my time is better spent working on getting the email alert system finished. Until I see a meaningful drop the wave count is mainly an academic exercise as nobody in their right mind is going to load up on the rips and I won’t play the short side until we complete (A) of {2}.