WBAI Trade on Jul 10, 2015 10:01 from ToqueX: Tradervue User Stock Trades.

Grade=F

The setup: pullback (ouch!)

The result: Not a pullback, but a nice bear flag. My long entry would have made a fantastic short entry. You're a true gentleman, Captain Hindsight.

So how should I distinguish that it was not coming out of a pullback?
It had broken MAs just a few minutes earlier and it was showing rounding action to the downside. I also could have seen cues from the SPY and other stocks in the China sector. I don't think I could have interpreted anything meaningful from the volume at this point. I'm pretty sure I was reading too much into the tape battle for 19.00 and this also mislead me. I also wasn't expecting the filled gap from the previous day to happen again.

I'm wondering about these Chinese stocks: Could it be that the gap valuations come from the sentiment in the Chinese markets (Shanghai and Shenzhen) themselves, then when the NYSE and NSDAQ open, the international investors fade these stocks when things are sketchy in China because of the mistrust and belief that things are just too dodgy in China to be trusted under current conditions. The Chinese investors are closer to the action and are trading with different psychology, so they may move their markets a different direction from the international traders. Food for thought. I'm wondering if this makes any sense or if there are articles written about this topic.