Intra-Day Action – 27 January 2016

Another interesting day with some great learning to be had. Multiple news items came into play today. The 10:30 Crude inventories was a huge build but Oil had traded down into the announcement then rallied. The news was “priced in” and it was a good learning moment if you were watching it live.

Everybody knew that the number was going to be negative, Business news was talking about it all morning. It was a case of “sell the rumor and buy the news”.

Later in the day the 2pm FOMC meeting caused major volatility. I was whipsawed out of my long position almost immediately. Then the markets broke down hard (that’s why you need a stop). You can check the analysis for the play by play.

I didn’t play the first breakdown (good example of getting your hand burned causing some pause). I did short the second breakdown after I really nice shake out tail that captured the Bulls. I was ready for the next break and covered using my TICK rules near the bottom of the down-leg.

16-01-27_spy

 

Did you find this article helpful? Please leave a comment and let me know. Share it if you think it will help others.

16-01-27_spy

About the Author Dave Gagne

Founder of MarketInsidersClub.com. President and CEO Dynamic Wealth Financial Inc. Author of Trading Master Plan Subscribe to the MarketInsidersClub Youtube Page here

follow me on:
  • J.Pedersen says:

    Thank you for an informative summary Dave! Useful in my learning process. Yellen did cause some seismic movement on the drawing-board, I did not trade the news :-)
    Cheers

  • >