As mentioned in my last market update, the market has been a narrow range day with price staying between 66.04 and 66.50. Hard day for longs since we never hit the 66.25 area of support. The market opened neutral this morning and went higher until 10:10 then sold off within a penny of the morning low before bouncing upward at 11:30. The market then proceed to attempt to challenge the high over lunch time without much success, and has now sold off after lunch taking out the mornings low. We are definitely in a narrow sideways pattern. Over trading today would have been the kiss of death and hopefully many avoided this peril. My first play was in PEP which I found this morning while doing my 9:45 scan. Not the best 9:45 bar but acceptable if nothing better, a least the moving averages were in the right direction. My entry was a 15 minute sell setup with the market. Price action put in a text book setup 3 bars up into a declining 8 ma. Yes, it would have been better off the 20 ma, but as long as your lower time frames are ready, such as your 1, 2, and 5 minute charts are in alignment, your 15 minute sell should work like magic! I’ve been working on money management by attempting to hold more shares to the prior low. Usually, I would take 1/3 of my share 1/2 way down and call the prior pivot low target II. Now, I’m calling target II, target I. PEP worked out beautifully as price action when all the way down to the prior pivot low where I sold 1/2 of my shares and eventually trailed out on a 2 minute pivot area late this afternoon. This really was a home run trade on a day like today. Here is the chart for my play in PEP…
pep