{"id":6198,"date":"2010-07-30T11:11:28","date_gmt":"2010-07-30T15:11:28","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=6198"},"modified":"2010-07-31T08:24:59","modified_gmt":"2010-07-31T12:24:59","slug":"was-it-really-your-level-really","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/was-it-really-your-level-really","title":{"rendered":"Was it Really Your Level? Really?"},"content":{"rendered":"

After the Open we meet with our new class and ask them to share a good trade from the open. There was a lot of I bought at this important level and the stock only went up from there. Was it really the level?
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So the first Newb saunters up to our 65inch flat screen which displays our charts, announces FCX and the 70 level as his trade. The chart appears and sure enough 70 was never violated and here sits FCX much higher.
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The next Newb switches place with the first Newb and offers LVS and the 26.40 level that we discussed in our AM meeting. Again LVS is now much higher. These are some great levels no?<\/p>\n

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From the back of the room, and in between some coughing and hacking, a balding (pretty much bald?) and be-speckled market veteran presented AMZN at the 115 support level two times and kicked it out higher. It is still climbing. It’s all about the 115 level right?<\/p>\n

You must know your levels. Certainly buying in front of important support levels is a set up in our playbook. But was it really these levels today or something else?<\/p>\n

Seems to me that maybe that bounce off the 109 SPY had a lot to do with all those other levels working. And that bounce off the 109 SPY was news driven. <\/p>\n

Lesson: learn you levels they will work. But more importantly understand the true reason why these levels are holding so you can build the intuition needed to trade the nuances of all these support and resistance trades.<\/p>\n

Enjoy your weekend!<\/p>\n