The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Monday, July 13, 2009

SPY reversal

Just a reminder, this week is OpEx come Friday.
As mentioned in previous posts, when price gaps up only to return to the previous day's close (PDC) I look to scalp short, with a target of a previous support level.
The selling this morning didn't look to have strong momentum behind it (as evidenced on higher time frames), so I wasn't looking for an extended downside play.
Price quickly recovered and based back under the PDC level providing an excellent entry long:

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