Comparing Tomorrow with Today

BellaMike Bellafiore's (Bella's) BlogsLeave a Comment

We haven’t seen too many days where offers were paid like today in the past year. I mean that was just amazing. The buying in GS, the buying in AAPL. The explosiveness of the moves. How hard it was to get hit on the bid. Where did this buying come from?

I would say today was strong but that would not add much value. I would say that GS was strong. And APPL was strong but that is about as useful as stating that the sky is blue. So what do we take away from today? The buying. The buying. The buying. The way the stocks were bought. The way the stocks moved. How explosive the upmoves were. How hard it was to get hit on the bid. How shallow the pullbacks were. All of this needs to be inputted into your head. And you need to brandish this day for future trading days.

If you start to see the same buying tomorrow then you can get aggressive. If you notice upmoves that are not as explosive then this is meaningful. If you start getting hit easily on the bid then take notice. You can take what you saw today and compare it to the next two trading days. And any differences you can exploit.

Tomorrow if I start to notice upmoves that are not as explosive, I will consider shorting. If I notice it is easier to get hit on the bid I will start to look for weakness. If I see offers cleared, bids stepping up, difficulty getting hit on the bid, then I will aggressively play the upward momentum in AAPL, GS, IMB, etc. I have no idea what tomorrow will bring but I know the patterns from today. And I can compare tomorrow with today.

I will review the moves in my head. I will remember battles in GS, what they looked like, and then their resulting upmoves. I will feed my brain with the trading patterns from today that I will use tomorrow. Trading information that will enable me to exploit favorable risk/reward opportunities.

But it was so refreshing to see offers lifted like today. It felt like the late 90’s. Stocks can still go up apparently.

Best of luck with your trading!

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