April 28th - Days End

Here is the days-end post from my efforts in the market. Actually, I had only one additional trade beyond the one posted this morning, given my attention to mattters other than trading.

I watched AIG at the EOD, finding a point where momentum seemed to be ebbing and presenting a good opportunity for a paper-trade long. The 3:40 pm candle had a long lower wick but a relatively narrow body... (ie. it couldn't sustain its price drop for the full five minutes) and then the 3:45 candle hesitated to move lower than the 3:40 low. A realization that this all occured with increased volume (3:40pm candle) at a minor support area made the decision to go long easier. Further, I just had a gut feeling that there would be some profit taking by the shorts after the $1 drop from the 2:25 pm candle high.

I took only nine cents out of the twenty-two cent closing pop. Even so, it was an acceptable pick of direction reversal.