S&P 500 - Gap fill move lower in October
Updated
There is both a old gap from September which can be filled and the risk/reward is also interesting enough, therefore I published this bearish short idea. I have to break one of my trading rules though to come to the conclusion that the "S&P 500" is going lower, therefore the probability for the decline is low. Bulls could also breakout from here, therefore the tight stop loss.
Sell the news event?
Donald Trump unveils ambitious plan to overhaul US tax system
theguardian.com/us-news/2017/sep/27/donald-trump-tax-plan-reform-republicans-cut
Entry: 2500-2510
Target: 2470-2460
Stop loss: 2520
Risk: 10-20
Reward: 30-50
Sell the news event?
Donald Trump unveils ambitious plan to overhaul US tax system
theguardian.com/us-news/2017/sep/27/donald-trump-tax-plan-reform-republicans-cut
Entry: 2500-2510
Target: 2470-2460
Stop loss: 2520
Risk: 10-20
Reward: 30-50
Trade closed: stop reached
As I had written:"the probability for the decline is low. Bulls could also breakout"
&
"I have to break one of my trading rules though to come to the conclusion that the "S&P 500" is going lower"
Conclusions: Never break the rules of your strategy. The breakout happened.
P.S. And even the shocking and horrible shooting in Las Vegas, which killed more than 55 innocent people and injured more than 500 people - didn't slow down the bull rally on Monday at all. There is no connection between reality and this market any more.
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