Compared to the tricky AIG trades, CERN just slowly moved lower

short entry

exit

AIG stalled so I'm taking profits

If it wants to go up , I'm not one to argue with it

AIG long again

WIth markets showing red it's prudent to take profits on this AIG pop

got stopped out of AIG for a second time, but taking AIG again here

markets are pointing down, so I'm getting out of AIG, pity it's not available as a short to me today.

Will keep an eye on it though as it's in play.

took AIG long again

AIG was another one that just ended.

entry

exit

I caught a couple of nice dead zone trends that just ended now.

FAZ short entry

FAZ exit

TNA entry

TNA exit

Preparation.

As I woke up this morning and visualized the likely market moves (up, down and sideways) and going over my edge and plan in my head, I reflected on the huge pops we've had recently. I congratulated myself on being in the right place at the right time, recognizing the opportunity, taking advantage of the opportunity, and taking profits. I reminded myself it's a good thing to remain flexible and not have expectations, to plan for the downside. This lesson has been doled out in severe terms to traders who have expectations short and long and have been crushed by them. Seeing the big pops as a pattern in themselves should make you wary of the next time it looks like the perfect short setup. It's proof that anything can and does happen. It's proof that waiting for the perfect setup is pure folly - it never is 100% certain that a play will follow through according to your expectations. So having no expectations is the only way to trade smart. If you trade the probabilities and possibilities of something happening instead, preparing yourself beforehand for any event, you have the advantage over traders who do not. You are the one who will execute your plan, taking profits while others are unable to process what is happening.

Whatever forces that are trying to keep the markets up will probably try again and again until conditions change or they are unable to. Be prepared.

On another note, I was thinking last night on who I am as a trader and what I do. Trying to distill what I do down to the pure essence of my craft I came up with this credo:

I make money by exploiting the opportunities that market momentum presents me.

It would be a good exercise to think about what fits with you and how you view your trading.