We have been waiting for GS to hold above 173.50. I quick check of the 5 day in GS will so confirm.
108.10 SPY is an important technical level. A hold above and our next important level is SPY 110.
Before the open you should have had these thoughts as an intraday trader: Imagine if GS can hold above 173.50 AND SPY holds above 108.10, then this will be a Trade2Hold.
One of our developing traders met Steve in his swank new office sequestered in a quiet corner of our new digs (How come I don’t have an office like him? Who do I speak to about that?) lamenting an early sale. I stopped in to get my morning view of the Hudson. I have a view of a building and a few streets from my office. This trader sold GS at 174 and cursed this sale. Our response?
Yeah that was a bad sale. It was because a pattern developed that you ought to recognize as an intraday trader that discourages an early sale. To be frank when you see this pattern there is tremendous risk in selling too early.
A lawyer might say when you spot this pattern the burden is on the market to show you her weakness.
A trader might say that there is no reason to sell.
I said, “That was a Trade2Hold.”
GS finally held above an important level of 173.50. And the market was holding above an important technical level of 108.10, with no significant resistance in sight. The burden is on the market to show you GS’s weakness. This is a Trade2Hold. It is a fundamental trading error to cut your gains to early with this pattern.
Maybe you want to name this pattern the Daily Double. Or perhaps the old OneTwo Trade. Gotta go. Steve is calling me. Probably wants to talk about some new art for his office.
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