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Tuesday, September 12, 2006
Here is a market that is not "behaving." There is a very strong seasonal tendency for this market to be going down but it has a strong rally happening. Further, today is one of the most bearish single days of the year, the 7th trading day of September.
I do have a short position in a day trade that was entered at 1317, which is right about where the price is as I post this. There are a couple of other bearish patterns in place here. An outside bar following and inside bar where the outside bar has a positive close is also a short term bearish pattern.
As a result, my trading system has generated a sell signal to be exited at days end. This is a counter trend trade, so it is not lined up anywhere near perfectly. However, when your method says to sell you sell, when it says to buy you buy. It really needs to be that simple. You take the trades when they favor you and just accept what happens.