Everybody has a right to my opinion.

Ya, I'm an overbearing troll:

there is this fine line between being an asshole and sharing my opinion(for what it's worth)

Teresa,
The SPX.X played out according to a likely scenario that you alerted us to. I got out with a good profit at about 860 but missed the low at 851, right after the opening. SPX went below the lower trend line and probably ran some stops as you postulated. Any tips on how to identify the low or is it just a matter of “shoot first and ask questions later” (famous T Lo quote). I did not notice any unusual volume spike. I did notice my open profit position dropping pretty rapidly from $1700 to $1500.
I’m also wondering why you follow SPX.X instead of the SPY, which has huge volume every day.
Thanks for describing this SPX move in such detail. That podcast you did was very informative and extremely helpful. Also being able to ask you questions about these trading patterns is invaluable. Thanks so much for providing such a valuable service at a very affordable price.

Pat

Over there, I typed up a reply to this question. Only I decided not to share it because... what is the mantra "GET YOUR OWN FUCKING BLOG"... Oh... I have one...

so instead of posting it there I'm posting it here.... for what it's worth:


Pat has a great question. In all my questions of the like, to different technicians, I've been mocked several times for reading the spx or the Naz, instead of the spy or the qqqq.

I remember an october last when after the market spy, spx, iwm, r2k, dow, had made a Lower high, But the QQQQ had made a Higher high. When I asked a prominent technician this very same question "Why the QQQQ and not the Naz?". The answer I got was that "Everybody does it that way, because you can get volume. Since Everybody does it this way, You(I) should do the same thing.". My follow up was that it just so happened that the Higher High, was on aapl earnings date, and that the qqqq was 20% of the qqqq and this had distorted the picture. His reply was that "It's just the way it's done."

My belief is that you just have to read the entire market, During the day I read the spy, Probably because I'm lazy, and reading the spx and the spy seems redundant, and it would be just one more chart to read during the day. BUT, I do read the spx and the naz just about every day mostly when things feel like they are on the edge.

I do feel like the spx is a dearer picture of the market. but no volume, but you can trick the charts, to look at the spx with the spy volume.