May 18th, 2011We alerted you to the AAPL counter trend short and we said we would look for $330 to be support on that trade if you were going to trade it short. The low in AAPL was $330.73 so the move was a little over 9 points.
From the $330.73 low AAPL has had a 9 point move to the upside. This is why it is important to know where support is before you take the short and look for a reason at support to cover the trade.
Today NFLX turned into a minor buy signal on the daily chart. It is minor because the signal is coming from a minor wave. Minor wave trades do have higher odds of getting stopped and we only want to trade minor waves in the bigger trend direction. We never trade counter trend on minor waves. $239.50 would be the best entry tomorrow but NFLX does not have to come down to that level.
We are looking for $270-$280 as our target for this trade.
If you tried to short intra day today in the futures you were trying to short minor counter trend waves. These type of trades have the absolute worst odds of making you profits. It is best to avoid these trades altogether.
If you miss the trend trade you missed it there is no getting in back. The thinking " the market has went up so far it has to come back down" is the wrong thought to have.
Just like AAPL $330 as support we had TF 815 as our support on the move down and we have had a 19 point move up off that level. Having the bigger levels can give you confidence you are day trading in the right direction.
Happy Trading,
www.eMiniSchool.com
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