Looking to Buy the Dips

Follow @MrTopStep on Twitter and please share if you find our work valuable!

Our View

Yesterday’s Lean was way off and I knew it when the ES opened and down-ticked to 4409.50, just below the opening price, and it never printed there again. Plain and simple it was a “buy every pullback” type of trading day.

I knew coming in that the Nasdaq was firm on Tuesday and Wednesday and I actually went home long 2 ES from 4397.50 (which I also screwed up). The moral of the story is two-fold:

1. I did not honor my sell stop to stay long the ES

2. After I got out at a small profit I did what every rookie does — I tried to sell the NQ. Why? Because I was not long, which is the biggest mistake a trader can make. The funny thing is we wrote about NVDA being a bellwether stock and it was performing well throughout the day.

Now Nvidia’s results are blowing the estimates out of the water (again). A robust report has that stock up about 8% in pre-market trading and hitting new all-time highs. It’s giving a nice boost to the indices as well. See how that holds up today as a feel for how the market will trade too.