January 2, 2019

Market outlook

Daily charts:
- trend is up on daily charts
- today NF closed 1% in negative at 10792
- AD was 5:12

- last 2 days, we are seeing break of prev day's low followed by some correction and then recovery
- so there are 2 hammers on EOD chart but no follow up buying
- we should had a gap up opening but we got a gap down opening
- trading can get choppier as NF approaches lower trendline

- option writing support 10500

5 min charts:
- shorted on break of 15 min low; stopped out
- ignored first 2 short signals as it was near a known support
- could not trade short again as every new low attracted buying (see arrows)
- chasing the market would have stopped me out

- in hindsight, safest short trade was the first signal but was not taken because of multiple whipsaws in past few days

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