Please Tell Me You Didn’t

Posted on Jul 9 2015 - 1:31pm by Sharpe Trade

Please tell me that no readers of this website bought that rally this morning in U.S. stocks.

Remember it?

Seeing all of that green?  Remember the feeling of euphoria at 9:30 AM EST this morning?  

It’s all green … it feels so good … maybe it’s over … maybe I should buy on a day-trade here …

So says the natural human tendency, and psychology, of the new trader.

Don’t be that person!

Don’t buy markets that open up 2% higher than the previous day.  When every single stock on the board but two are opening green, and up big?  Well … this is just me being a bit nutty … but you might see some weakness in the 8 hours that follows such an open.

For the last week, equities have given us bull and bear traps.  Meanwhile, the U.S. 30 year is turning back over to key levels, and we are left to see if 151’28 is going to hold on the September 30 year futures .

2 Comments so far. Feel free to join this conversation.

  1. MrAgronomist July 9, 2015 at 2:48 pm - Reply

    It almost got me too! My sharpe trade voice inside me said “what the weekly chart said?, did the trend change? Nope! I actually bought more puts to hedge my long positions. Thanks for the lessons.

  2. NewLife July 9, 2015 at 10:38 pm - Reply

    Nope, but I did think about buying a Hong Kong ETF I watch. That thing rebounded like nobody’s business today. Let it pass for now, though. Too much drama in the markets.

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