Well we finally got the Reversal Day on Wednesday. I think everyone’s been waiting for it – especially as we approached a 50% retrace of the recent sell-off. But it was important not to jump in too early.
Got this email on Tuesday from Denis:
“Dear Barry, Thanks gain for sharing with us your insights and helping us to trade like pro’s.
Today I was trying to catch a point where upward move will turn into a correction. You keep saying that the move is not over until End of Trend signal is rippled through several timeframes … Unfortunately, the move kept going without a correction turning the day into a trending day.
Have I missed something? Were there any signs the move will keep running until closing?” Denis
So it’s a good time to re-cap Rule of Thumb #3: Reversals Happen Before 11am (Chicago time). This would have kept you out of a losing Short trade on Tuesday; but got you into a profitable Short trade on Wednesday.
Good luck with your Emini day trading today.