Home > Lessons from the trading floor > Great day at Keystone:

Great day at Keystone:

Nothing beats a day where the markets picks a direction, gets confirmation, and follows through. Since last week we, and many others, have been waiting for a confirmation for the 52 week highs the Dow Jones had made. We had to wait until today to see the NASDAQ make a 52 week high and confirm the buy order flow we have been seeing in the last 10 days.

Fortunately all this happened early in the day, which made it much easier to hold on to positions. The best parts of these days is to see the whole firm looking to enter trades in one direction, long, and then have the majority of the traders hold one and add to winning positions.

We may or may not get follow through tomorrow, but one thing is certain – traders need to take full advantage of days like today, and avoid days where the volatility and choppiness pick up. Everybody should engrave in their minds the price action for today… so that you are even more prepared for the next time we get similar price action.

 

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