I should have made double what I made today but I made some big mistakes. It was fairly obvious that we were going to get a short covering rally into the close, I just wish I was long YM instead of ER2. ER2 had bearish divergence all day compared to YM, and I struggled on my long ER2 positions. I should have been buying YM, because it has a bullish divergence as you can clearly see in any chart.
P/L= $1,624
I was down considerably today, but held true to my long ER2 position into the close.
This morning I held a long position on ER2 at 815 for over an hour holding 10 cards and I took some negative heat on the trade. It was frustrating to see ER2 getting rejected off 815 3-4 times showing a big bearish divergence, while YM and ES had bounced back to the morning opening levels. Because of ER2's bearish divergence I ended up exiting my long ER2 postion too soon. I had a target of 817, but ER2 wasn't moving quick enough, so I scaled out into 816's. Because of ER2's bearish divergence I later tried shorting 817, thinking it was a good resistance level, but ended up giving back my 1k profit and ending up going in the hole. Then I was thinking, WOW, I should have held that 815 all along. So I went long at 819, took 1.5pts worth of heat on the trade, and waited for the close. With all three sectors trending higher into the close, I knew there was a good chance of a closing short covering rally, so that's why I was long on ER2 into the close. Normally I don't trade like I did today. I messed up because I was trying long positions on ER2, when instead I should have gone long YM. The bearish divergence on ER2 was frustrating for me today, so I will be smart next time and remember to take long positions on YM, and short positions on ER2, like I did yesterday.
I'll post some charts later, gotta go get some food, haven't eating since 6 this morning.
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