The market gapped down hard this morning I’m playing spectator for now. We’re still in a possible consolidation phase. Holding overnight is dangerous for day traders.
On Friday, I took a loss in a trade on UWM. It’s the cost of doing business. I mentioned it was on the radar. When TWM gapped higher, but couldn’t hold on, I looked to UWM for a trade.
I gave myself what I considered a conservative buy area. The ETF had changed the trend by putting in a higher low pivot. I bought over the high pivot around 68. My entry was a little late. A stop was placed a few candlesticks lower near 67. The market didn’t cooperate, and late in the day, the trade was stopped out. This was the same trading setup I described the day before. One negative aspect of the setup was the downtrending moving averages. In hindsight, the trade was probably not the best to take because of that.
Would you have taken it? Compare it to this setup in OIH the day before. UWM was a 15-minute chart, while OIH was a 5-minute chart.
