In this kind of market indicators become almost useless. Trading gets driven 99% by emotion and traditional things like RSI, Stochastics and so on become meaningless. To an extent the Vindicator is the same. However, two things I want to point out: first, the Sell line on the Buy/Sell moved above the Buy line Monday and pretty much kept trending upwards right into this morning, where it accelerated along with everything else; second, the 5 minute V Stoch gave a sell signal when it topped out around 11:30 CST this morning. I actually considered taking that signal on a day trade basis, another woulda coulda shoulda. One thing I see here is that the 5 minute V Stoch is the place to be in a fast market, if you'll notice it threw a buy signal around 1:30 PM CST, the market bottomed around 1:45.
Interesting that the Vindicator did not issue any Buy/Sell signal and thus kept a trader away from this rollercoaster trap and safely in cash. That's a good thing.
ReplyDeletePretty disappointed that I closed my short position yesterday, although I'm not sure how a person could have traded what happened this PM, the action was absolutely wild - if I was short about the only thing to do would have been to hold. Once again, picking an appropriate exit with the Vindicator is a challenge. Also, you're correct, the Vindicator (at least on the 30 minute chart) didn't give a signal today, I was primed to go long on a tick up of the Buy line but it didn't happen until towards the close by which time any trade would have been foolhardy, so it kept me out of trouble.
ReplyDeleteSame thing here AL, I was short big time till yesterday. I had 7000 FAZ. Made 5000 bucks and got out. This would have been the best day of my life had I held just one more day. Thing is I counted five minuette waves at yesyerdays close. All they where was 1-2's and then when the waterfall came today you could see the 3rd wave clearly on the charts and I knew it had a ways to go. Did not step in and short and glad I didn't. I don't trust floor traders on days like today, you end up with the worst fills. Anyways, glad we survived. I am sure many futures traders got their accounts wiped out since their stops where only filled maybe as much as 60 S&P points lower than where they placed them. Let's see what the Vindicator has in store for us tomorrow.
ReplyDelete