Plan yesterday was to sell the prev day high. It ground up there in the first hour and flapped around as the market started consuming stop losses. I exited knowing that stop loss buying will most likely get up to R3 and filled my boots after close for a tidy profit. One of the tricks closing on the highs is to wait for the auction and spread widening to take out more short stops and sell a spike. I did notice some really nasty gaps in trade at yesterdays high as the depth was widening 4-5 points, taking stops and coming back down to find a buyer. I have not seen that for a while.
I dont know what to do today. This is the market structure I dont like. The H&S I was watching form has now formed a double top and this next top could form another head. Probably set a new range today and see what it looks like tomorrow. I would rather stick pins in my eyes then long the ASX.
I looks like the extreme gap will close at 6350. If you want to long then buying around that area will be good need a big stop below yesterdays low. If the extreme gap does not fill then price should be extremely bullish and will be a good target for longer term shorts higher. I am going to wait for today's trade to complete plot some ranges and put a fib on tomorrow morning see where I can sell this.
Thursdays can be volatile so a spike up to 6419 in the first 10 mins of trade or pre-open will be a sell. I am not going to entertain any sells if I see a stop loss buying grind during the day maybe at the close if its like yesterday.