Friday Log - Trending Liquidity on Different Time Frames

Only took a couple trades in AM as I prepared to participate only in the morning session. First 30-60 minutes was confusion factor as EOW, EOM and eco reports contributed to high volatility. Got in on a couple of scalp trades which was ill-advised due to the quick reversals and difficulty getting a read on what the market wanted to do. Result: -2.0

Tried another long and then a short trade but basically a scratch. Could not hang around after 1130 due to some obligations and as it turns out the day was a 3rd trender in a row. The liquidity has been there as well as the opportunities.

Something that is very clear is not to get caught up in the high volatility swings as was the case in the first hour or so. Long shadows on most 5 min bars with 4-8 point ranges. Unless we capture a fill on an extreme edge, develop a quick profit with a cushion as well as have a little luck in direction, it's extremely difficult to trade this heavy chop. Best to wait for the next opportunity...and it will come. Just need patience.

Always consider views from different time frames. Larger time frames trump smaller.

Trade Well !

Wednesday Log - Be Prepared

Took the first trade at 0945 as I anticipated price to touch 59-60's. Filled short in upper 59's and quickly scaled 1/2 in 57's. Housing report due out at 1000 so had a bit of a cushion and profit to let remaining portion ride. Had heavy target of 52's planned as I anticipated test of overnight lows. Worked the overnight combo range as guide. Result: +9.25

Tried a couple of low risk scalps in lunch session but many distractions during the day. Call the two trades a scratch. Getting more of a scalping mentality after primary move. Been trying for too much during lunch/PM sessions and need to just go for the 1-2 point moves. Watching combo moves during slower periods and seems to be strong indication of opportunity.

Expecting continued volatile market the next couple days as we close out the week and the month. October 28 and 29, 1929 marks one of the great drops in market value in history. October has a reputation for big moves. Good traders anticipate what might happen, what could happen and what to do when something happens. The motto of the Boy Scouts serves traders well..."Be Prepared".

Trade Well!

Monday Log - No Rhythm

I could not get into any groove today. No trades taken although I had a couple set that were not filled. Short post today as I work on my revised planning tool which is 90% complete. Plan to put it into action within the next 1-2 days.

Be aware of EOM/EOW price games during the week.

Trade Well !

Thursday Log - Trend with Interruptions

I was not able to get a feel for the market once the bell rang and was on the wrong side looking for 1/2 gap try from 45's. Stop was below overnight low by 2 points which was knocked out quick. 1000 eco reports loomed and needed to be out by then regardless of trade position. Result: -6.50

That was the end of my day as household interruptions and pressing errands were attended to.

One observation regarding this trending day, there were pullback areas during the day which provided opportunity to go counter trend for a couple points once the price action "rested" as well as areas to re-enter short. The trend had nice interruptions in it in order to gain some trades. Internals supported the down move with steep angles.

Should be able to be in position to trade most of the day Friday although expecting range bound day which is usually the case the day after a trending session. Employment report comes out in pre-market which could influence the day.

Trade Well !

Monday Log - EOM & Eco reports Loom

During the weekend, I was able to catch up on some chart reading and EWS website review. I was in a position to watch the Globex open at 1800 and peeked back in around 2300 late that evening. Saw support in the 35-36 area so took a paper trade for overnight. Put on 4 C's (which I am beginning to gradually incorporate into my live trading) with pre-set exits.

After entering in 37's, I scaled out 50% in 40's, 25% out next morning around 0730 in 44's, added 1 C in 44's and took last C from original entry off in 46's. Ended up b/e on added position. Result: +22.0

Not as good results after the regular session began. Was expecting 1/2 gap to fill but missed by a couple ticks. Stop was a bit too high (at MP level) and modified my stop rule so my stops are set no more than angel/demon feet / head respectively and maximum 2 pts. Shorts were squeezed and so was I. result: -7.0

Tried another short in 51's but that too was squeezed. Result: -3.0

From there it was a matter of nibbling back my losses in a market that had lighter volume due to Yom Kippur. Price was range bound for most of the lunch and PM sessions so only scalps were appropriate. Came up short recovering loses but felt comfortable "getting back on the horse" and getting what I could and what the market wanted to give me. 5 trades - Result: +9.25

Today I continued to feel confident even though I had to dig out from a deep hole I had dug for myself. I am revisiting my rules and honing them in order to create a little more discipline with my losses and trade management. I felt the market fairly well today and was "playing" with Mr. Market by scalping for 1-2 points and one final mini-swing trade at EOD.

With end of month quickly approaching as well as major eco reports to be announced this week, I am expecting price games and volatility. I'm ready to go at it again tomorrow.

Trade Well !