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Thursday 8 August 2013

Sell S&P 500 @ 1697-1700- won

Sell S&P 500 @ 1697-1700 for 4pm EDT end of day expiration
Result: won
S&P 500 closed at 1697.48 (Signal was issued at 1:51pm EDT, 1697.48 was the lowest since then, therefore no matter when you sold it, it's a win)

Falling below 1698 to 1697 should confirm a downtrend
But although it did not go down further, we believed 1700 to be quite a resistance & it should at least fall below 1698-1700 where the head & shoulders pattern formed
That's why we put 1697-1700, for a stronger & safer signal
Even though it did not reach 1697, it's still a win as it closed at the lowest price after we issued the signal

Therefore we need to be very cautious while trading, finding the safest trades so that even if it misses our estimates, it can still be a win




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