The market gaped into resistance at the open making it very hard to trade long and everything I had on my list today, had little room to move higher, so I found myself just setting on my hands until I notice PEP giving me the finger on the 60 minute chart. I learned this from one of my instructors, Dustin Tibbitts, when the 60 minute chart gives you “the Bird” or what looks like the middle finger, it’s over to the upside. So, when price hit the area of the PDC I expected the buy to fail and when it did, I went short full share size @ .09. Price went lower rather painlessly, as a newbie trader I would have attempted a long, but this is another lesson I learned from a guy still teaching at Pristine by the name of Sami Abusaad, and that is not to be so obvious. The obvious trade would have been a long in this area of major support but after getting the finger and remembering not to be so obvious, I just had to took the play short. I was rewarded handsomely as price moved quickly to my chicken targets of .00 and .95 then PEP fell in a flurry and hit my first real target of .84 cents where I covered shares for more profits. Price then formed a green bar after the last flurry lower then proceeded to be engulfed by another red bar (GBI) where I added back shares @ .77 and reduced my stop to .93. Price then headed for my second target of .64 cents where I covered 1/2 of the shares that I had left, after the add and reduce. Soon after I decided to trial out of the play at .82 cents as the hourly buy in PEP had triggered. A great trade and a play that I could see the future happen, before it actually happened, wow! ESP… lol
