Tuesday 26 March 2013

22 Points Profit Today

It was uncertain on the open of the market today.  There were a few News items, and one half an hour after the market open, so I was cautious and kept away.  Even after that it was not certain, but I was convinced there was weakness, with the high volume on up-bars created by the high volume of trades at the market open.  Below you will see a 10 minute chart of the Dow Jones.  Previous to Point A you will see high volume, but it's not excessive, hence my hesitation.  However the market tends to go sideways after its initial move up, and does not make new highs.  Point A marks an Upthrust, and a sign of weakness.  On seeing this I went short (at its close), and followed the market down 22 points at which point I took my profit.  It would have been great to stay in longer but I prefer to take my profit, especially as I wasn't too sure as to the market's intentions.


No comments:

Post a Comment