3 replies to this topic

[hedgehawk]

Please share some ideas on how to play the gap down............would it be prudent to buy this dip looking for a gap fill or is it a situation where we could plunge into an abyss? What are the down side targets for today? There is so much whipsawing going on right now that I feel as helpless as a junebug sitting on a stump. I guess I will just stand aside........

[maineman]

Never trade without a clearly written out trading strategy. No trade is taken without exact knowledge of risk, profit and exit strategy. Know exactly why you would enter a trade and know exactly why you would exit. Keep your rules, which you have completely verified by yourself, simple. You should be able to explain the reason for your trade to an intelligent 6 year old. Never take any one else's advice, unless it is advice that you are able to incorporate into your trading plan. If so, then see rule number 1 above. Anything else is gambling, guessing, playing. mm

[skyymaster]

Please share some ideas on how to play the gap down............would it be prudent to buy this dip looking for a gap fill or is it a situation where we could plunge into an abyss? What are the down side targets for today?
There is so much whipsawing going on right now that I feel as helpless as a junebug sitting on a stump. I guess I will just stand aside........

That is actually not a bad strategy. If you noticed lot of volatility has occurred in the last 30 minutes of the session and that may be the time to wait for countertrend play. Sitting aside is also an excellent strategy.

[hedgehawk]

Yes, I figured we would lose mo as we approached the 50 SMA on SPX at 1510. I wanted to go short at this point, but the market missed my short entry point by a few points (cash market) Yesterdays high. So I anticipated the decline as many others did, but did not expect to be flat when a decline started since I missed the entry point. I suppose patience is required at this point.