Another day to be cautious and have your discipline tested!
I had an LVN marked at 4123.25 that seemed likely to get tested as we dipped below the opening price after chopping in a tight range.
Usually, after a period of consolidation the market can rip in either direction so I was scaling out quickly to lock in my profit.
When we failed to hit the LVN and left a long wick on my PnF chart I was a little suspicious.
This was confirmed when I saw the DOW pumping as well so I exited the trade.
What happened next? (click to zoom in gmail)
The market just blasted off 20 points with no looking back.
And as of this writing, the ES is at 4167!
A full 40 points above my exit price!
I sat out for the rest of the day rather than gambling long or looking to fight and join the shorts.
In today’s DPS I explain why it’s more profitable to sit out until you have a solid trade idea again.