Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Monday, March 22, 2010

The Breakout

This is a 15 day chart I think of the SPY... This is the breakout trade...

The market breaks out of the range.... Goes running past.
THEN IT RETESTS....
THE DECENT TRADER KNOWS THIS. Knows that that Red LINE must be retested. AND REGARDLESS OF THE SUCCESS OF THE TEST... IT WILL BOUNCE.

Now that it has bounced..... NOW THE MARKET MUST PAY!!!
It's SHIT OR GET OFF THE POT!!! ON THE BULL

I've made my bet, and I may be wrong.... BUT I MADE MONEY... AND THAT IS ALL THAT MATTERS. I may puke... or I may win on the next one.....

WE SHALL SEE!!!

THIS IS ALL i KNOW...

Just for Clarity, I'm short right now.... Ready for the downtrend... Though I'm talking about the Breakout trade, I'm talking about how to trade it with limited risk..

now my new trade is higher risk..... I just thought there may be some confusion here.

maybe we still run tomorrow... I'm not sure... but I'm happy to be wrong. But I wanted to explain hot the retest of the breakout worked.

3 comments:

Tony said...

Resistance has become support?

Eric said...

sure.. but the second part of that question, assuming you think in the Fourth Dimension.

Is for How long?

Eric said...

that came off as patronizing...

Sorry, it's obvious ... I'm sweating it.

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