Thursday, June 25, 2009

Fade to Black - II

Today's early drop was the inverse of Wednesday's pop. The subsequent 9:38-9:48 magic circle, however played out pretty much the same.
The difference, of course, was the sudden bullish reversal off of the S1 pivot back up to the PP pivot by 9:45, causing me to miss a nice little potential gain.
The Qs parabolics actually fired a BUY at 9:44, while the NYAD parabolics, as discussed yesterday, were still in a SELL mode and were in a divergence signal with the 3/7 MA cross. In these cases, during the first 30 minutes of day, the smart course of action is to ignore the NYAD parabolics and focus on the NYAD's MAs and the underlying Qs parabolics and MAs.
Following this trading plan, we enter the Qs at 9:46 at 35.60.
With the NYAD now upslope at 45 degrees and my rollers running all green, the first target is R1, which is reached in only ten minutes. At this point there are no signals indicating a reversal and after a 4 minute pause the Qs chew up to my next target - R2 - and by 10:18 that target is only 1 cent short.
The Qs then form an extended squat bar below the R2 and at 10:28 the parabolics fire a SELL. The NYAD has already fired a SELL at 10:24, so I follow the convergent signals and close the trade.
Net time in trade: 9:44 - 10:28 = 44 minutes
Net trade gain: 35.60 - 36.05 = $ .45
The trade managed to eke out my target of .01 per minute and once again I'm done early for the day.

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