14 May 2015 - Just In Case

Our ST signals have not been very good with volatility, and in fact none of the indicators being used works when volatility is involved.  So make sure you have that ingrained in your head.  Were we prepared for this?  Of course...  Yesterday I wrote: Right now volatility trumps trend so we need to see where the intra-day momentum stands each and every morning open to be ahead of any possible ST CIT. 

During the intra-day open today we saw a good move to the OB range, and this would have been the signal to get out of any short that you are holding and hold for those with long positions.  I can't be any clearer on this subject.  But we all battle our inner demon and sometimes do not follow the rules we set out for ourselves.   If in fact the trend was a fake out and it would have moved lower eventually, it would have been a good idea anyway to take the loss and wait for a confirming move lower to re-enter short (Because we do not know how long or far an acceleration can take prices). 

With todays impulsive move, the ST was able to change direction within the same day, this suggest the move today was quite significant to say the least since it is often the next day that we see any reversal on the ST. With that said, any exit of the OB range would be a good signal to exit longs so there is a guaranteed profit taken.

MT: UP
ST: UP
PA: UP