I woke up at 7.30 this morning, with another 30 minutes till closing bell. I had no positions on.
The market was rallying as expected, with the SPX eventually closing 4% up. Overall, it was still on a downtrend, but i am expecting a few days of rallying towards the resistance line around 811 or 830ish.
My system requires me to look for only short setups because the prevailing major trend is still down, and overall sentiment is still negative. The rationale for this thinking has its roots in the thoughts of Jesse Livermoore/ Edwin Leferve of how events tend to fall in line with the prevailing trend. I determine the trend by using simple trendlines on the weekly charts.
I could feel my emotions tempting me to make a trade. I flipped through a few bullish charts that i identified and despite the fact that technically they seem decent trades, i will maintain my discipline to stick to that philosophy.
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