All's well that ends well or so they say. If you can't concentrate on the job at hand you should stop doing that job until you can.
I missed several excellent trades this week due to lack of commitment and I was stopped out of at least 2 runners because of lack of zeal. I am going to work on that for the next week and try to make up for my failings and faults. OK here's what happened Friday.
On the open I scanned 125 gap ups and 5 gap downs. I know from experience that the market usually falls under such weight and it did. It truly has to work off all of that energy. So anytime you see the Dow Industrials go up almost a 100 at the open - watch out below. Be careful. On Thursday we saw some negative indicators such as the three sisters in the (last hour) and the 20 day highs being at an extreme level (761).
That told us to watch out on Friday. Then we got the jobs report and Boom! a rocket shot. But that too is a warning sign. Next time you see this happen just watch your step.
Friday's close brings us the 3 sisters in the white - in fact a very strong finish. Even though there was so much upward momentum during the opening the rest of the day was down down down and that took some pressure off the 20 day highs although they are still over 500 - coming in at 657. Again a very negative factor. When everything is so high very little is left to purchase and the market comes down.
The up/down ratio is has come down again and is at 46% which is 6 points less than Thursday. That's good. I'd like to see it in the 20's but as long as it isn't in the 60's I'm happy.