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I do my share of screw-ups but manage to repeat them anyway.
I've been watching sugar for a bottom on the daily and it's gotten a bit
more interesting. Also, I liked looks of a possible cup and handle which
appeared to be forming on the 30 minute. So when yesterday's last 30
minute bar climbed back through the horizontal red line representing the
next expected consolidation area, I bought sugar. Now the NY markets are
known for all kinds of shenanigans so I have a rule to place SCO (Stop
Close Only) orders which means that price must close at or beyond the
specified level and this helps to prevent getting caught in intraday
shenanigans. Well I was so anxious to get long on the price pattern that
I didn't wait for a SCO order but entered a market order which was
filled at 513. Naturally, they immediately ran the price right back down
to 505 at the upsloping red trend line and I figured I had been screwed
again. Last night someone clued me in to take a look at the out months
(July and November) because the price action was not supportive of the
near month. One look at those charts and my worst fears were confirmed
and I looked forward to a gap open down through my stop.
Well, as can been seen this morning, this one appears to be working out
(so far) and I've been able to snug my stop. Rather than scuttling the
rule, I have underlined the rule and thanked my stars for the reprieve.
In the meantime, I'm wondering if this rally will turn out to be some
kind of ABC correction since the out months still are not rallying as
much as the near month. Any thoughts.
Earl
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