We had what appeared to be a trading range type day until the Fed news came out at 9:00 AM CST at which time the water fall occurred. I’m not sure if there is a very large channel here or if we just got a large over shoot of the smaller channel with the mid line (the black one is the smaller one), but I was looking at the smaller black channel with the mid line in the beginning.
I tried to enter the big move down on a limit order and missed it, so that was a little disappointing. As you might expect, prices did find a bottom and quickly took back most of the move created by the news. This is common, and you will hear me talk about it often.
Comments
trs112556 May 7, 2014 at 10:16 am
Thanks Mack. Our charts are looking the same today.
Rik May 7, 2014 at 10:16 am
Thanks, Mack. I was luckily already short at the trend line as the Fed news reaction took hold – but cashed out on the runner at what I THOUGHT was the trend channel line (only to watch it go 6 points further). Still, if that’s the worst problem I have today, it’ll be a good day…
Mack May 8, 2014 at 10:16 am
I occasionally exit too early on my runners as well, but what I have noticed in the long run is that you will be right more often by exiting, and in the long run, you will still make more money. Those big huge moves happen only enough to keep you guessing at it.
Jaydee42 May 7, 2014 at 10:16 am
Thanks, Mack!