Trading What I See

If you exclude the gap, there was not much range again today. I’ve seen some studies that tried to say almost all of the gain or loss in the indexes over a long period of time actually occurred overnight, and that for this reason you couldn’t make any money day trading. I guess the bounces that happen intraday don’t count.

Actually today would have been pretty hard to trade, but at least there were some turning points that made sense. As I’ve mentioned often, leave your major trendlines on the charts as long as you can. After today’s large gap, the first move went right to the bottom trendline from yesterday.

We didn’t actually turn there, but the trendline was respected. The sideways movement eventually got to (and slightly through) a parallel, and also tried to form some small channels.

There’s really not much else to point out on this chart, and I’m going to have limited computer access until the end of next week, so some of the commentaries (like tonight) may be a little short. Good trading.