Full RE Pullback


In an email to mpcentric this morning. Posting it here to be able to find it again in the future and keep it in this category.

A quick thought about this morning's long off the VAL. This trade was in fact a delayed "buy the DVAL after RE to upside" trade. So yesterday we never came back low enough to buy the DVAL after RE and so we need to look at the idea of carrying this over to the next day. Perhaps the VAL is a "better-than-usual" bet on days like this because of this "hangover trade."

I have named this trade the "Full RE Pullback" because after RE we want to go long at some point during a pullback. The biggest pullback where this trade is still valid is the "other side" DVA low/high so I refer to it as a Full Pullback. If you can think of a better name then let me know.