September 16 2009 Overlay, Trades, and Commentary

We had an excellent read on the market today. I made a good recovery after a down day yesterday.

I ended up buying close to the low of the day both days but managed better today. The premium entries in this uptrend have been the inside support zones when most retailers are thinking short.

The AM short I took just after the New York open was a bet in case the potential inside support zone broke.

You can see that I covered on the extension low and then entered long when the price snapped back above the inside support line.

I am a little disappointed in the early exits. I caught a good chuck of the move up but could have managed better. I had the premise correct and anticipated the grinding move up. This is likely institutional covering and adjusting into quadruple witching on Friday.

I basically covered under the premise of "I have enough open equity to make a couple other bets elsewhere and I am no longer sure what my long side expectation is".

This may not be the best reason to exit. There was no structure telling me to exit.

However, my long side plan was market at close exit. This is often problematic and hard to hold.

I need to also note that my premise included having a vacuum above 1052.00. Once this area broke, I saw limited resistance up to 1065.00.

Overall, today was well traded. I need to continue to be aggressive and LET THE MARKET PROVE ME WRONG tomorrow.