Starting late yesterday afternoon, I began anticipating a bullish bounce position and entered a Wonderwood (see names of trades tab above) long trade. Click here for Wednesday' Wonderwood Long. After the close I reviewed and determined I would remove the stop on that trade and enter Wonderwood long positions on any additional lows. Click on Stock Market Update and Outlook for June 6 and 7, 2013 to see the analysis. Following through, today I entered a second Wonderwood long position near this morning's low. Click here for second Wonderwood Long Position from this morning.
After that, the market rallied strong and put in a very bullish set of candles on the 2 hour chart. Here is the 2 hour chart, with the new stop position, from end of day.
I tweeted about that setup and potential if you follow me on twitter, as well as discussing it on a private blog. The import of this is this is either (1) a fake out, or (2) a bullish move that will take us back towards the highs. I am not going to make a decision on those two possibilities this week and will instead spend time this weekend in analysis. Measure twice, cut once, would be the idea. Instead of rushing the analysis today, I am going to leave that stop on where it is for now and see what follow through we get tomorrow (if any) with the jobs report. Ideally, for me I would place the stop at this morning's low (2 bar low), but I have cheated it up to a one bar low (the second candle low). There is a chance the market could spike that low, but I don't feel like playing with it tomorrow so I set it tighter. Things could not have went better with those two long setups.
So, I will leave it to the weekend and do a Stock Market Update setting forth my thoughts for the market outlook and forecasts for next week. Have a great weekend.
Peace, Om,
SoulJester