It Happens That Fast
February 10th, 2006 by BWV
Yesterday saw an attempt to push up out of this 2-week down trend. I got short the IWM up at 72.15 as a trendline/channel play.
Sadly, I covered the short on the first thrust down.. at 71.87.. only to watch the market sell off violently into the close. We’ve now duplicated (in time and magnitude) that afternoon selloff again this morning.. and are already down to the lower price channel.
So it’s basically too late to short on a swing basis.. at least in the small-cap index. And I caught only 1/5 of that sweet down move.
I was using a 10-minute chart.. that was part of my problem.. getting too caught up in the tiny back & forth index moves.. and eventually letting a little burst of volatility shake me out.
Here’s the 30-minute chart. For trades expected to last a day or two, this is probably a better tool than the smaller intraday timeframes (10, 5 min).
Frustrating. Just gotta keep on plugging.
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