Wednesday, May 26, 2010

5/26 10:20

The basic trading rule that I employ is to trade in the direction of I1 and the 5-minute,380-unit M/A.  When market returns to this M/A a trade is placed.  I keep exposure low waiting for this opportunity.  Regardless of the wave count this basic rule is followed.  The market rallied to it's current point in the evening session yesterday. Today's action is the cash session mirror of 15-hour old activity.
5% SDS was bought at 34.90 and 34.54 based on this rule.

The other 5% was bought at SPX 15-minute, 54-unit M/A near the close which has been eclipsed by this rally.

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