Wednesday Log – The Days Recap

I began the morning with a Globex trade. Got in near the overnight low but was stopped out. Was looking for possible gap fill but never had a chance . Result: -2.0

The regular session started out well as I shorted the open @ approx. 0940. Captured a quick 4.25 points but should have swung at least one C. Market was strong down until it rested into its channel after approx. 1020. Tried a couple of “barb wire” trades from the Brooks book (need to read that chapter again) but was stopped out as I got caught in the chop. The trades would have worked with 3 point stops. I was working with 1.5 – 2 pts stops which are too tight for the 3 minute timeframe. Result: BE

The afternoon session was range bound but with some continuing dips lower. Patience was the key today. After the two legged pullback from the morning dive, the market meandered lower for another 10 pts. Not much I could do as it drifted down after not getting in earlier below S1. Tried one short but too tight of stop. Result: -1.5

In the final 45 minutes, the CE trade set-up nicely. There was SS and TICK divergence while price was on the edge of intraday LL as well as an IVB. Entered approx. 2 points from the low with stop just below LL. First target was 2 pts which was hit and I walked the 2nd C stop up. Ended up getting out 4 points from below the top. Maybe a bit tight on the stop but the CE is usually good for 2-10 pts. This was a maximum end of day run for the CE set-up as shorts released. I was patient for the trade to set-up and took advantage. Result: +6.5.

A consistent observation is that once price cuts thru a pivot point, the chances are highly probable that price will test the next pivot area. I need to swing a position when all the internals are pointing in the same direction and the pivots are in play.

Trade Well !