Hello everyone, wow what a wild morning. This morning as you know, ES futures spiked a crazy 150 points on a 5 min candle just after the CPI data, simply an insane move!
Anyway there's been two open positions on the systems: The SPY Bear long - which, quite honestly I'm hoping some of you elected to take some partial profits early morning on that gap/gift! You don't get moves like that every day or even once a year, that was so out of bounds.
Regarding the open ES Stoch short - as I've been commenting and discussed in the newsletter, consider having a stop on that one, such as entry price or something that you makes sense for you. Thank god we locked in 1/2 gains on that original short over a week ago for very nice gains, so even if you stopped out this morning you would have still made money on that trade because of the scale out. If you had set a stop at the entry as I've been suggesting you would have been stopped out just after the CPI numbers as ES spiked up to that entry point. If you did not set a stop - consider putting one in now, or you could exit if you wanted to as ES has pulled back 100 points off the highs now.
I hope that quite a few here choose to lock in some ample gains either pre market or after the cash open on that SPY bear long. 150 point moves on ES in 5 min is something way way out of standard deviation.
The system is a daily system and it's not going to be able to react to intra day moves like that and that should be common sense.