So as stated, I don’t like to buck trends and buy on the very first bounce.
I also avoid buying (or selling if short) anything before 10:30 am est. I mean … I’ve done it, because you can’t make a blanket rule that covers every situation. But it is rare for me to get involved in any position before 10:30 am EST.
Call it a bit of a timing tool. I’ve always referred to it as the “10:20 Turn”. Some refer to the first hour of trading in equities (stocks) as ‘amateur hour’.
Because many times (not always, but many times) at or around 10:30 am est, you’ll get some sort of reversal as the ‘rush’ of buyers drains away. Thus why we could say that anyone who bought to go long within the first hour of trading has made somewhat of an ‘amateur move’. It is also why … going back all the way to 2007, I’ve called this the ’10:20′ turn. Or … ‘amateur hour’.