Not every moment is created equal during the trading day. I fought and grinded and fought some more in COF today. Some moments were more enjoyable than others. But there was one shining moment. One period of time that made all the difference. Meet 42.30. Say hello to the catalyst.
It’s 10:45ish. My eyes are starting to twitch from an hour plus of staring at funny seemingly random numbers scrolling up and down and across my four trading screens. My stomach growls as my 7:30AM protein bar now leaves me hungry. A stop to the mens room might be a good idea.
But this is the moment so I place my physical desires aside. At 42.30 there is a huge battle spotted on the tape. My charts confuse each other, like a Democrat talking to a Republican about taxes, because COF is right at the trend line. This is now both hands on the wheel, I must catch the next move in COF trading. This will determine my day floods my thoughts. This trade. Right now.
And so what happened? There was an unusual hold on the offer at 42.30. I am short. I am short multiple lots. 42.30 lifts, I flip, now I am long multiple lots. COF does not explode so I sell. I got caught with one lot as this is just a fake breakout and now my best sale is 42. Ouch!
I weasel out of some at 42.07 and 42.09 and 41.90 (this is not a good price). Admittedly I am not happy. My orders beforehand had not been treated well. It was like I had to spot the Specialist 1k to play at his table. He could have just saved some time, met me at my office, asked for 1k check, and then started the trading day. And now this rip. These are the days that make me consider writing briefs for a living.
There were some positives even given the nonsense of above. I did have my downtrend again in COF. And the sellers had won the fight at 42.30. The next level in COF was much lower. I started a short position, a longer term intraday short position. And that worked.
We see important intraday levels everyday. Today in COF for all the explanations given why it ought to go up and down the real reason was the sellers won at 42.30. You don’t have to catch the first move above or below these levels. You just have to hang in there. Spot the level, follow the trend, and feed off of this catalyst.
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10 Comments on “Meet Mr. Catalyst (COF 42.30)”
I don’t understand the rationale to even get involved with COF where you did. It was whippy, spready and unpredictable. Why not wait till later in the day when you had more information about trend, market sentiment, etc?
I understand part of it is your trading style, but I can’t get my head around any advantage of getting involved so early.
Thanks for listening. I enjoy your blog.
I don’t understand the rationale to even get involved with COF where you did. It was whippy, spready and unpredictable. Why not wait till later in the day when you had more information about trend, market sentiment, etc?
I understand part of it is your trading style, but I can’t get my head around any advantage of getting involved so early.
Thanks for listening. I enjoy your blog.
It was interesting that you noted “At 42.30 there is a huge battle spotted on the tape”. As such, I thought to take a look at the Volume Mkt Profile for COF. Sure enough — a defining Point of Control for size traded right at the 42.30 level. http://www.charthub.com/images/2009/10/25/COF_30min_MP.png
It must have lit up like a Christmas tree on the order book.
I’m usually looking at the 30yr Bond futures, but the more I read your posts, the more interested I’m becoming in equities.
It was interesting that you noted “At 42.30 there is a huge battle spotted on the tape”. As such, I thought to take a look at the Volume Mkt Profile for COF. Sure enough — a defining Point of Control for size traded right at the 42.30 level. http://www.charthub.com/images/2009/10/25/COF_30min_MP.png
It must have lit up like a Christmas tree on the order book.
I’m usually looking at the 30yr Bond futures, but the more I read your posts, the more interested I’m becoming in equities.
I will discuss on my StockTwits TV show on Sunday night at 8:30 PM EST. We will link the discussion if you miss the live broadcast.
I will discuss on my StockTwits TV show on Sunday night at 8:30 PM EST. We will link the discussion if you miss the live broadcast.
Thanks for addressing my question in your video. As you alluded to in the broadcast, the video was way out of sync with the audio. So, I just sat back and enjoyed the audio. 🙂
Thanks for addressing my question in your video. As you alluded to in the broadcast, the video was way out of sync with the audio. So, I just sat back and enjoyed the audio. 🙂
thxs for the questions andrea.
thxs for the questions andrea.