September 3 2009 Overlay, Trades, and Commentary

Action was slow today as anticipated. I took one decent long off the bottom.

I hesitated on a micro pullback entry I like to take which led to me entering with a 1/2 position a bit later. This can be problematic if you catch your large runs with smaller position size.

My plan was to add if the price pulled back but it did not. I should consider always entering with a full position size to avoid these types of situations. This is a form of indirect hesitation because the loss on a 1/2 position is small compared to a full position.

There was a good descending triangle formed about midday. I had a long bias but anticipated a series of lower lows into the afternoon.

I have seen this many times before. The market looks like it is going to break support and the retail traders start shorting into the lows then price reverses.

A descending triangle is a bearish pattern but I always like to take the contrarian breakout (new blog readers please note that patterns are MEANINGLESS without context to direction and structure of the market. I am not just trading random patterns).

Today the short covering started before the price could attack the lows and I did not get an entry. This is OK.

I have been reading the market very well. I expect for there to only be one opportunity tomorrow to hit a good sequence before the market goes into a comma for the long weekend.

I plan to bring my "A" game.