Lets get rolling with the summary today.
What a day. We expected today to be a nice range for trading and indeed it was. I hope many of you made lots of money today.
Wow.. does this smells like things are gonna get ugly real soon? we started the morning saying that things are still ok, but we are very near to closing below the 20ema. So here it is. We have really closed below the 20ema now! *drumroll!*
Election time? Doom's day? Well.. it definitely is if you are long stock. That's the beauty of trading futures. Doesn't matter if the market is up or down. You can go either direction!
Alright lets look at the price action for today.
FKLI:
We opened at 1587.50
High: 1587.50
Low: 1572
Closed: 1574.50
Cash:
Opened at 1591.87
High: 1591.85
Low: 1580.28
Closed: 1581.64
We opened at 87.50 and BAM! we were at 73 in a blink of an eye. Stops being hit from a big order. We recovered very quickly to 82.5-84 level right after that.
I thought this was a good opportunity to short but I waited a bit too long because when I keyed in an order to sell at 81, price dropped to 79 right after that. Yeah, its this kind of day! We went down to test 74.50 after that.
Then we bounced up to the 77-80 level and traded in a tight range right through lunch.
I parked a buy order at 73 for two of my traders during this time. Then I got distracted and went to look at FCPO contracts. Freakin huge mistake.
But cut a long story short, I really wanted to trade the FKLI on a day like this and I got distracted. Lesson learned. Doesn't matter what the cause was. As a trader bringing my game to the next level, I take full responsibility for the result.
Lastly when price went back down to test the 73 level and touched a low of 72, I canceled that order. Price touched 72 and quickly bounced to touch 75-75.50. See how your mind can get messed up due to other distractions? But its ok. New day, fresh start tomorrow!
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What to expect tomorrow.
Well.. looks like things might start to get ugly soon friends.. the possibility is really in the cards now. The breakout of the flag for the S&P seems to be on the downside.. and if that is so, I think we will have a swing low too. If you would look at the daily chart of the KLCI Index, we finally closed below the 20ema conclusively in a long time!
With the election coming and all, I think we need to be careful of how we are going to trade for now. I will be looking for opportunity to swing a short position from here. If there are non, then I will continue to scalp the price action as usual.
So, I'll update the levels again tomorrow. Trade safe all!
Ciao!
Best Wishes,
Tech Trader
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