SPDR S&P 500 (SPY)

[Fox13]

What happened to my TBT trade, started this morning (click above)? Well, it did not go as planned, but it might be interesting to have a look at it, since we can learn more from our unsuccessful moves. Briefly, I was kicked out of it when the TBT price fell out of the ascending channel previously constructed and the trailing stop was hit. But here comes the mistake: I DID NOT WANT TO ADMIT THAT I HAD BEEN COUGHT IN A BULL TRAP. I could have entered a SHORT trade in the opposite direction with another tight stop, and if I had done that, I could have gone all the way, through waves 3 to 5. One might notice: long wave 3 was a perfect example of Fib price extension. Now after a 1 to 5 trip, one might expect tomorrow an a-b-c move in the opposite direction…