Today was one of those days.
What was looking like a shaky retest now looks like a reverse head & shoulders low (or a triple bottom). For those of you who have been paying attention to both the broader market theories espoused here, as well as the specific trading dynamics, there was money to be made in this environment.
If you made the difficult trade and saw some portfolio net gains, congratulations — go buy yourself something nice.
If you did not participate because your methodology does not involve active trading or market timing, congratulations for sticking to your discipline.
Everyone else should be trying to figure out what today meant. Was this a repeatable set up? Are there clues you may have missed? What lessons there are to be learned from recent action?
Originally published on November 13, 2008 at The Big Picture blog and reproduced here with the author’s permission.