From looking at some of my trades today you might be wondering how I can time the momentum so well. The APC trade here in particular seems like magic but here is how it happened.Being short APC I am looking for a good time to cover. The key being that 10 minutes earlier RIG already made a jump up. I'm long RIG and watching profits grow. APC is still meandering lower. Most other oil are rising now too. So it is just a matter of time statistically speaking before probabilities start to lift APC. My gut feeling said this is no time to be short APC and if a short is no good, I must go long. The odds say so.
Moments later it starts rising strongly.
If an initial entry shows profit and the stock is lagging in comparison to its peers, the only logical action to do is to add size.
So it is far from being magic. It is just seeing and recognizing what the markets are doing and acting on the information.
1st chart is short cover and long entry
2nd chart is exit.
