I left the trading pits in 2002 and quickly realized screen trading was a different animal. My goal was to go from scalping the markets to a trader looking for bigger moves. I designed a trading system based predominantly on market divergences. This is what I call computer trading at its finest. Computer trading takes the emotion out of trading.
What I know about my trading system…When I get numerous sell signals at the high of the move like we are seeing in the E-Mini S&P 500 (ESM), getting short is all about “timing and deep pockets.” I have been patient and finally got short ESM at an average of 2052.00.
If ESM trades below 2012.00 I will add on to my short position. If this trade comes right, I will look to hold it anywhere from two weeks to eight weeks. There is a little unfinished business in ESM a gap from February 12 /16 on the cash only chart at 1860.75-1870.25. Let’s take ESM below 2012.00 and see how the bulls feel down there.
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