THE COUNTER TREND BUY 10/31/13

Fundamentally, there is nothing wrong with a counter trend trade.  It, like any trade, has a purpose for the trader.  The trade needs the same judgement as any other trade:  what is the risk, what is your exit strategy, and what support do you have to take the trade.

Yesterday it was the 73 sellers, last evening it was the 53 buyers.

[21:09] <CM> 21-34-55 min charts sellers at 73  for the short selling today  (chart deleted)

[21:15] <CM> 53.25 buyers prior support

[07:22] <CM> holding the 53.25 from support  resist at 56.75 59.5  (chart deleted)
[07:43] <CM> from last evening sellers at 73 buyers 53 approx  next longer term target the 55m 50cb  (chart deleted)   target for us mkt
[07:46] <CM> will let stop follow  win-win  (chart deleted)

The longer term target was the giude, as the longer term chart was the basis for the entry.  Havving more than one trading chart is nothing new.  All time frames have reasonable trade set ups.  The general guideline is to see a set up om a longer term chart ( the belief that the trade will develop over time; work) and find a shorter horizon PB to trigger your entry at a better price.

A short time horizon trade will be quicker to execute and complete.  Thus why scalpers like 1 minute to 3 minutes, day traders like the 5 minutes, and institutions like day and weekly charts.  Your trade style and purpose will require the appropriate tools.

PM

[21:12] <CM> back to the 63-53  thinking we still have another move for the bulls.  from the 10/3 blog  " A settlement will occur, and buyers will have their better price for the Q4 run into the 1700's.  We still stand by the 1734 area and now see a possibility of 1768".  we are there, and the 60-80 area is seen as the high.  a fed easing in jan + another debt show down would be good for bear season..