If you recall the previous intra-day post when I wanted to lock in at least 3.5 to 4 points on the short position and as soon as I did they took the market lower still. I then moved my stop to reflect the exact same spread that I had with the original stop I put into place.
I kept this same spread all the way down until I was stopped out.
I did not get the ultimate low, as I was stopped out 8 minutes before the ultimate low, but the stop did what it was supposed to do and along the way we captured 7.5 S&P points.
So, from wanting to lock in 3 1/2 points we almost doubled that goal by using a trailing stop.
There is really no hard and fast rule about stops and many times you may find their placement is based upon what you see going on in the market at the time. There is nothing wrong with this premise, but keep in mind that placing and maintaining stops is one of the hardest things to learn to do. You will find that the longer you study the markets, the easier stop placement becomes. Sure there will be times that they run your stop and you miss a move, but fret not, as there is sure to be another right around the bend.
Anyway enough of the stop placement lesson.
After everything was said and done, the fade of the open and the re-short of the rally, we walked away with 19.75 S&P points today!!
Remember that if you can catch 8-10 points in a day you had a phenomenal day, catch almost 20, especially in a choppy almost directionless market and you are simply kicking ***
It was a good day and hopefully this trend will continue next week.
I will be posting the daily market comment either late tonight or Saturday sometime.
There was alot going on this week and it looks like more to come next week, not only in equities but the futures markets as well.
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