The Fed’s QE Gap is now closed and it’s back to normal trading business. The Govt Debt Ceiling Debate Saga will now be the focus on traders/investors minds. We’ve seen this movie before and the characters are the same…Congress will NOT receive an Emmy Award for their performance.
Friday’s Blog post had members trading from the short-side early and throughout the session till settlement. It’s important to get positioned early to be able to ride the “Slope-of-Hope” momentum train.
Typically following trend-day is more of a range-bound type consolidation, so with residual selling momentum a break below Prior Day Low (PDL) could continue to push price down to 1695 – 97 zone. Violation of the 9/18 pivot low suggests deeper move which could carry down to 1688 – 90 zone.
Initial resistance resides 1708 – 10 zone on any bounce…If the market can stabilize and stage a solid rally attempt, price could carry back up to 3-Day CPZ 1713.00, but odds are relatively low at this point.
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.