As traders we are always looking for an edge in our trading. DOW yesterday had very nice buy momentum during the morning session as it broke through its daily resistance around the 30.80 area. Closing near the highs of yesterday I came in today expecting some continuation of the buy order flow.
Although it was not easy trading the first 45 min in the morning once DOW completed its ORB you can clearly see the long were in control. I entered the trade long with a break of the 31.00 area expecting a test and a break of the previous days high around 31.10. I exited the trade pre-maturely thinking DOW would not break to new highs b/c the SPY was still stuck in previous days range(this is around 10:15am est). Unfortunately I was wrong, The SPY did not break out but DOW did for about a .20 cent move. A little upset that I planned but still missed the breakout the next logical trade was to go long on the first 15 min pullback. This opportunity came around 11:00am, I enter long around 31.23 and was able to ride this for about .20 cents. I had conviction in the stock b/c of the previous momo move to the upside, the ticks were positive most of the morning, and the VIX continued to make lower lows. I sold into momo around the daily res and b/c the market internal changed, SPY was not making new highs and the VIX STOP making lower lows.
