Thursday, December 4, 2008

Cross currents Last Update - 2nd Trade Comes and Goes

Okay, one last entry about this trade and cross currents piece:

I got back in this trade at 866 primarily because of what was happening in the TNX… but also because the rally attempt stopped at 870 and was itself a bear flag that produced a target of 850! There was that number again, so I jumped back on and rode it to 850 and sold there. It made it beneath that, but as you can see, the 30 minutes stochastic hit oversold right at 850 like I estimated and thus no oink, oink!

It’s another good lesson in patience, while it worked out, this market is very dangerous for pipping people out of positions with a lot of throw-overs and head fakes.