Live trading room commentary sample
BPA trading room Q&A: March 28, 2016
Question: I am stuck! Do you have a live trading room where we can look over Al’s shoulders or others who are consistent like him to APPLY in REAL-TIME what we have learned? Believe me, I don’t need to ask questions, just listen to him or them.
Video duration: 3min 46sec
Sell or wait to trade
Swing bulls — they can buy hoping that this is a bull channel, that all the pullbacks are just one or two or three bars. Here’s a four-bar pullback that weakens the argument. They know there’s a magnet up there, yesterday’s high and the 11 lower high, and they know that there was a big tail on the bottom of 31 making a lot of bears not willing to sell. However, it’s a wedge and a micro-double top, and there is a bear body and we’re at the 60-minute moving average, and that is why I’m not willing to buy below 31. If 31 closed on its low, I probably would have sold it for a scalp.
Let me just take a moment to talk about how I do the scalps on a day like this, okay? Bull breakout above a bear channel; I expect it to trade down. Bear close 1; I’m looking to sell, you know, sell the close, sell the close. Weak buys, so I’ll look to sell above 3. Pair of bull bars; probably buyers not far below, so I’m looking to buy. Pretty good reversal. Probably at least a little bit more up, but I still think we’re Always In Short and there are sellers around here, so I think if I’m doing anything here, I’m selling.
Wedge three pushes up, five, nine, and 11. So probably going to get at least a pullback here so traders will sell the 11 close or they’ll sell below 12. Bear bar 13, but big tail. I don’t know, I suspect we’re going lower. Big bear breakout, probably going at least a little lower, so traders are selling. 15, similar to 3; it’s not enough to reverse that, so probably sellers above. 16, a micro-double bottom, a big High 2 buy. The bears should not have allowed that big of a reversal.
Limit order trading
Probably going up at least a little bit. I’d rather buy with a limit order. So 19, 20, I’m looking to buy below — stop below 16. If I get stopped out, I’ll buy more. 22, higher low, but I’m already long from either below 20 or one point lower. 23, big enough bull bar; 24, absence of a bear body, probably going at least a little higher so either buy with a limit order below bars or take a chance, buy the 24 close, stop below 23. Then 28, slightly better odds for the bulls than the bears, but you can do either one; you can either sell the 28 close, stop a couple ticks above 11, or you can buy the 28 close and buy more lower. 29, disappointed bulls; a lot of the bulls will try to get out breakeven at the 28 close. That means that we may pullback at the 28 close; probably sellers above 29.
Bulls, double bottom 27, High 2 29. Bull channel but I think probably better to wait. We may go sideways more here. We’ve been sideways since bar 24. So ten bars in a tight trading range. More of a limit order market, so I’d rather be buying at the 29 low, the 28 low, the 32 low. And selling above 32, above 31.