Classic Buy Trade In The Market Today
If you've been following my blog for any length of time, you could probably guess what I did today in the market.
On the open stocks gapped down due to weakness in the Asian markets last night. Around 9:35 I bought the SPYs and exited about 2 1/2 hours later when the S&Ps went positive on the day. This trade has worked well for me in the past and that's why I've written about it many times on this blog. It's an excellent method for short term trading or day trading and I trade this set up every chance I get.
Of course you can also short SDS (ProShares Ultra Short) which moves in the opposite direction of the market..
Posts
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
2 comments:
Kevin, what is the set up for that trade?
When the market (QQQQ, SPY etc) gaps above or below the previous day's high or low, look to fade the gap and for the market to return to unchanged..
So for example...if the SPYs open below the previous day's low, I will be looking to buy SPY a few minutes after the open. My objective is for SPY to go positive on the day.
If the trade isn't working by 10:00 to 10:15, exit the trade.
Post a Comment