$BP imo an undervalued company had sort of good news.
Overnight news? didn't check a damn thing, just glossed over and watching $TWTR stream! Saying that I think there are Fed speakers today so check the schedule.
Yesterday was pretty decent. Strong selling yet again but definitely some push back by buyers. I took a lot of trades with reasonable win rate but at least 10 were dumb, must take a good look at these and find a way to reduce them, initial thoughts are just taking that small step back and seeing the bigger picture. Trading short term 3 handle scalps (really a scalp is smaller than this but whatever) sucks one into the game and creates tunnel vision. My rules need some tweaking.
Overnight trade completed what I thought would happen during RTH. A push down to 1980 HVN and CLVN just beyond with VPOC sitting at an older area of balance (and old VPOC).
This volatility is nice in some aspects. I thought I was just getting better but a fellow trader friend pointed out that the market is easier to read when it's like this. Damn him!
Anyway, enough bullshit to today's plan and chart pr0n.
The monthly is imo right at or very close to a reflection point. The issue with looking for a reversal is that value has been found lower, and whilst this theme carries on any longs should be considered short term and NOT a trade to add/play with to make work. Why would anyone take a long under these circumstances? Well, when the market bounces in this type of scenario it can be violent and very profitable in a short amount of time (I have a long hypo today)
The MC shows value as being accepted below that large HVN at the bottom of the profile
IMO this is a bearish scenario that is more likely to lead to lower prices in the coming weeks. Given the world's state of affairs the fundamentals seem to go along with the technicals.
Just in: Seeing a lot of news about $FXCM and how fucked they are. MF Global 2.0. Eurozone deflationary.
With the market gaping down, according to auction theory we expect responsive buyers (algos) to step in and bring price back to value of yesterday at 1992ish and possibly beyond towards 2000/2010. If price fails to get back into yesterday's range and hold then I expect sellers to step back in and continue this weeks theme.
I am looking for longs on the open with MAJOR risk control and no excessive attempts if the first few fail. Depending on what happens if price gets back to yesterday's value I will either wait patiently for price to explore and probably fade it or go walk the dog and do coding for the rest of the day.
If price shows failure to get back into value I will be stalking a short (let's face it, I'm going to be stalking shorts the entire time but...) and for price to explore down to 1965 LVN and below to 1950ish. 1965 imo being a possible reversal area so watching out for that too.
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