Actually, a strong day for the Qs, opening above the PP and making a nice clean run to R1 before the afternoon Friday fade down to R1. It's always fascinating to me how the pivots work so well to provide intraday support and resistance and today's action was classic. The 5 minute 10/20 MAs cross took me long at 11:30 at 45.84 and with the Qs rubbing against the R2 pivot and the technicals deteriorating I took the parabolics reversal signal and closed the trade at 13:35 at 46.25. Expecting the usual Friday risk management fade, I was chomping at the bit to get out of the trade and hence took the parabolic signal (which is frequently premature,as noted Tuesday) in lieu of waiting for the 10/20 MAs to cross. In hindsight, that was the right decision.
Net time in trade: 125 minutes
Net gain: .40
Finally, an interesting post by Dr Brett today (he's always interesting) confirming the propensity of hedge fund managers to day trade as a risk management tactic. This trend is further reflected in the growing daily share volume of program trading and may account in part for the historical rise in the VIX mean levels and you can expect more of the same to come. This comes as a validation of Newson's article in SFO noted Wednesday emphasizing the increased need for focus on momentum.