Don’t let the title of the video/post fool you. For the most part I’m expecting a bounce as I’ve covered many of my short positions, but will be looking to reposition on the short side on any¬†intraday bounces. I’ll be watching the 60 minute RSI on NASDAQ and DOW for the 60 level acting as resistance.

On days like today I like to look at my website stats to look for spikes, which usually indicate a short term bottom is in. It’s looking like it’s going to be an unusually large traffic day ¬†on Zentrader, therefore I may have to invoke the “traffic indicator” which would ensure a market rally tomorrow.

93% of today’s volume was on the downside. So there was quite a bit of selling pressure as anything over 90% could spark a rally on the oversold nature alone.

Developing head and shoulders on USO

6 Responses to “Entering the Crash Zone”

  1. abdul Says:

    I am expecting a bounce too and watching the intraday S&P Emini. Market could bounce if we get a flat or positive news on the ADP report today. Alot of margin call over here in Singapore causing share price to drop steeply over the past 3 days. Small margin player who still holding on got burn badly and they have been very quiet in market forums and blogs here. LOsers out-number winners. If there is anything to learn here is first to get serious on our stops order and not to repeat the same mistake again.

  2. jeff pierce Says:

    Good to hear from you abdul. Hope your trading is going well. I’ll have to watch the character of the bounce but given how far we’ve fallen on the Dow I think there’s more selling in store. I wouldn’t touch anything long at this point.

  3. abdul Says:

    Thanks Jeff, I am more on day trading and nowadays very cautious at entry after some bad trades in the past. I think I learned more through mistakes and always remind myself not to do it again expecially trading against a trend.

  4. jeff pierce Says:

    Make sure you keep a journal of your mistakes and reveiw them from time to time. That will help cut down making the same mistake again (which we are all prone to do)

  5. abdul Says:

    Thanks again Jeff for reminding. The journal although recorded the past moves but it’s proven to be very important. I even print a chart on each trade. Now I get busier than before.

  6. jeff pierce Says:

    I like to keep track of my equity curve on a weekly, monthly, yearly excel document to see if I’m making money, losing money, any runs I go on, etc. It’s a great way to be in tune with your trading.

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