Another absolutely perfect 10:00 short opportunity today that I had zero size on. I caught it so its better than what I did last week but the management was extremely poor. The only reason this was a bit harder than last week was because of the gap up on the day plus the Mag7 being so strong. With mag7 above its HOD like that its very hard to know that the market is going to just reverse and slam down because up until that point the mag7 was holding up the entire market, you could feel it in the PA, every short was just coming back up to retest a prior high.
Internals: 930 OP @ 10:00
- VOLD below
- ADD below
- Mag7 above
-Indices below
Internals 10:00 OP
-VOLD below
-ADD below
-Mag7 below
-indices below
THIS IS WHEN WE HAVE CLEAR PERFECT CONTINUATION SHORT OPPORTUNITIES.
How to trade this: 10:00 entry, stop 1 point above HOD. Risk is about 6-9 points depending on entry and stop. That is less than $300 total of risk. As we make the last breakdown, add 10 contracts as we test the bottom of the flag, add 10 more as we break LOD, take 20 at the 10 point mark, hold 5 for a 2m candle stop. That would be over $1k in a trade which is more than enough for a 50k account size.