2022-11-15

Whipsaw massacre

Gap up after inflation numbers in a already piled on situation
The market is of course vulnerable for at least a fade
It is an open-auction out of balance which goes up and down through the open several times
If you expect imbalance, like i did, this is the recipe for a whipsaw massacre
You get in several times, you reverse positions but you do not get paid
I was in for the fade or the liquidation several times but always got chopped out
When the liquidation came (triggered by ukraine news) i was already out

We took out a daily high and are offiicially in balance on the daily now
Interesting to see how the market came back in the afternoon
Liquidations strenghten a market because they take out longs. These longs have now sold. This means a) This sell already happened and b) they can become new buyers (normally again at bad location)
I would not be surprised if we open higher tomorrow