You know I hate these gap-up openings… especially after such an obvious set-up like that 50 DMA bounce. That’s why I keep Rule #1 taped to my monitor. This looks like a good day for it. We’re still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.
Could this be the long awaited-turn? Wonder how bloody it’ll be, since the longer we go w/out a correction, the worse the correction is.
By the way I’ve heard your rule #1 stated many times as follows: never trade in the first hour.
It could be the start of the turn, but I think we’ll at least get a couple of days worth of a bounce before rolling over.
Yeah, the first 30 to 60 minutes can be real dangerous at times. I really wish they’d stop releasing econ reports at 10:00. Seems like all those things should be released before the market opens
By the way I’m not a trader like you are … at least at the moment; made all the classic amateur errors in the two years leading up to the start of this rally, which I’ve been sitting out to teach myself the discipline required to wait till I feel like I know what I’m doing.
I still get a kick out of wathing the proceedings … lately I’ve been tracking the Vix & the QQQs using the CCI (commodity channel index) … right now the Vix is close to the upper extreme of the channel, which tends to signal an imminent turn to the upside. But I definitely think it’s getting way too dangerous for the bulls these days.