Market went down overnight poked yesterday's low before open. I thought it was the pull back I have been waiting for. But it was an open drive out of gate. By 11 am ES already crossed last three day's high touching 1844. My expectation was to see a new high today. During lunch time it started to pull back. My assumption was that market got ready to park in mid for Fed min release. After the usual volatile movements of a major news it appeared the bulls defended the low of 1830 and pushed ES back to 1839. The last hour came to a sell off. I guess that the minute had discussion of rate adjustment causing a major concern. The day turned out to be a bearish engulfing pattern. My early entries based on the assumption of 1830 low defended were all under water. Early evening China's PMI survey was down 7% and pushed ES broke day session's low to 1818ish. The bearish engulfing pattern may bring more selling in near term.
On the other hand CL pushed up to $103.5 territory in the later session as equities were falling. The crude inventory report was scheduled to tomorrow due to Monday as a holiday. I will wait for the dust settled to add put sell as a hedge and possibly add a call sell to average my cost after a high is clearly put in.
Quote of the Day: Adapting to Change is The Greatest Challenge in Trading By Dr. Bret Steenbarger
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