Really don’t know what to make of today. Seen a few comments today about people wanting to throw the towel in.
I shorted what I believed to be a strong technical confluence… Fib levels (61.8 on DOW hourly), 100 / 200 / 50 MA’s and EMA’s converging or likely resistance on most time frames, very poor breadth throughout the early rally, and with continued lower highs yet price being 300 points off yesterday’s low, and MACD hadn’t produced positive divergence on any time frame prior to the rally, everything was shouting out for a short.
I literally shorted 10 seconds before Draghi spoke, but he only reiterated what he said yesterday so with the initial spike in Indices I checked EUR:USD and its reaction was very mild (yet Draghi’s speech was aimed at the Euro), so with stops above yesterday’s high I left the trade to work.
In the end I couldn’t bear to hold on any longer and closed for a fair loss towards the day’s high in the last hour.
Bulls haven’t been able to make 2 consecutive green closes in almost 3 Weeks so its hard to imagine bears are over, will have to wait and see on Monday.
Whatever the outcome, days like today make a mockery out of the use of T.A.
I think Cobra summed it up perfectly with this statement:
“I’m speechless, cannot help thinking of throwing all TA books, theories, everything I learnt and once firmly believed away, because it seems nothing really matters, trading requires nothing but imagination, BULL imagination.”