Thursday Log - Study Day with EWS

No trades today. I was watching the market from 0800-1000 and was not enticed to get involved. Turns out it was a choppy day. Glad I took the day to bury my face in the Emini Wizard System. All I can say is "wow"! What an eye opener.

Trade Well !

Wednesday Log – As Simple as 07 / 08 / 09

Trader Tip – The VWAP (volume weighted average price) is a wonderful tool to have plotted on your charts. I use it on my 1 and 3 minute charts as it gives me a good sense of direction with what side of the market I should be trading. I only use the middle line of the VWAP. Google VWAP for more info.

The numerical sequence of today’s date lined up nicely with my one round trip trade during the wild AM session. That first 90 minutes was crazy as the bulls and bears were pulling the rope in both directions with the bears finally taking control.

The CO set up once price penetrated yesterday’s close prior to knocking on the 79.25 door twice on the 3 min. Entered a sell entry stop @ 78.75 and filled but not before another attempt towards the PP and overnight HH. Internals were mixed but decrease in volume and SS divergence on HH gave me the confidence I needed to average into my position and added @ 81.75. Price ran thru the overnight HH of 882.5, ran the stops and stopped short of the PP where my stop was.

Internals began to weaken and NQ and TF began to fall hard so the trade began to get comfortable. PO1 finally hit just after 1100 and scaled out of my positions from there as I peeled off at key support areas. Had one remaining runner left for final possible push towards daily S1 and weekly S2 970 support area. The trade sequence was flat at about noon. No afternoon trading performed as I had to run some errands. Result: +25.5

This was one of those trades where I felt good about how I managed the trade. Although I did take some heat during the consolidation period 1000-1030, I had a good plan, saw strong resistance in 84-86 area and traded the way the market was telling me to trade. It is trades like today where I feel a sense of accomplishment in the development of my trading melon. Man, is it hard to redirect our thinking from how we are hard wired for everyday life and how we need to think in able to survive in this trading jungle. In the end, I’m told, it’s as easy and as simple as 1, 2, 3, or should I say 7,8,9? It doesn’t happen quickly but eventually it comes around and everything lines up.

Trade Well !

Tuesday Log – Accumulate Profits

Trader Tip: Be aware of pivot points. These are important levels that floor traders tend to work off of. I use the Carter pivot formula which is close to Woodie’s formula. All traders should consider plotting the pivots for themselves so they understand the concept. A very useful website for pivots is: http://www.mypivots.com/dn/?symbol=189 . Pivots offer clear levels of support and resistance areas. The Traderfeed blog is a good resource for pivot probabilities.

At the open I was looking to fade the gap down if internals were strong as yesterday and overnight price closed above 889-892 area of support. I missed the initial down move and waited for first pullback once price stabbed through overnight low. I could have stuck with trade on 2nd C longer but failed to do so as I was looking for 886 area (S1) as first support area. Certainly could have stayed in trade with BE stop. Result: +3.0

Second sequence trade was a TC set-up. First pullback to mid-upper KB. It was textbook but once again should have stuck with initial target on second C before tightening stop. Wanting to realize profit rather than letting my trade idea work continues to cut into my profits. First PO hit and second initial would have hit if not for moving stop. Maybe I need to just set the trade and walk away for a few minutes? This is one of the most difficult parts of trading, let runners run or at least let you trade idea work. Result: +4.5

Studying the Emini Wizard system and already discovering a new dimension to help my trading. ‘E’ talks about profit areas and to accumulate profits and not to look for it all at once. Certainly makes sense. Although we are only two days into his tutelage, I see that he has a patient style for sharing information, responsive to student questions and is pretty organized with his spreadsheets.

Entered a CE trade at 1535 but would have been better off SOH. ETF’s and indicies were making close to new lows and should have played it more conservative. But stuck with rules, only traded on profitable day albeit indicators were marginal for snap back scenario. In the future I will pass on the CE set-up when indicators are marginally in my favor. -1400 extreme TICK (triggered @ 1450) is usually a good signal to fade the move after a second stab at the lows. Looking pretty weak. 872 area next support area. Result: -3.0

Trade Well !

Monday Log – Today’s Trades & Trader Tips Begins

Today I will begin to post a “Trader Tip”. I’m not certain if it will be daily or just frequently that I post the tips but I want to capture aspects of trading that I find important.

Trader Tip: Market internals are an important part of a day trader’s basket of indicator’s. The pro’s monitor these indicators each day. Learn about and be aware of Advance/Decline, TRIN, TICK, VIX.

Still shaking off some cobwebs after the long weekend so I wanted to be conservative while I get my brain acclimated back into the game. First trade was prior to ISM eco announcement but did not stay in the trade. Was it a MO? Hindsight says it was but volatility got a bit crazy and I scratched.

Next trade was long in 887 area thinking 2nd candle of day would be support. Price continued down, realized I was wrong and got out as price went lower. Result: -1.5

After EDRP and first pullback to mid-upper KB, I went short on this first TC set-up of the day at 885.25. Price entered a chop zone and closing in on lunch time lull so had a stop just below 887 and stopped out. A three point stop would have kept me in the trade but as it turns out it was a poor entry and profit would have been minimal. Result: -2.0

Final trade of the day was going long in 886 area once double bottom held in 885 area around 1235. Price came up to previous high of 888, knocked on the door a couple times before going thru. First PO1 was 888.25 and hit. PO2 was discretionary with max being in 900-901 area in which a trailed a manual stop. Total trade sequence Result: +6.0

For the day +2.5. I’m exploring a new system to compliment my trading as I signed up for the Emini Wizard System over the weekend. I’ve been following ‘E’ for a few weeks, communicated with him and have been intrigued by his call outs of how the market will likely behave. He has communicated promptly to my tweets/emails and believe he is one of the good guys. I look forward to learning his system and picking his brain. It looks much more complicated than other systems I’ve been exposed to but that’s probably because it’s so unfamiliar.

Trade Well !

To those who are visiting my blog, enjoy the long weekend with family and/or friends, stay safe and remember what the 4th of July represents. Our day of independence in 1776 gave us the ability to live free, dream wildly and achieve any goal we set out to reach. Thank you to our founding fathers who created an unbelievable document and the foundation of a great country.

Happy Birthday USA!

Thursday Log - Short But Sweet

Got back from PIT late Wednesday afternoon after seeing the Cubs split the two games attended. More enjoyable than the outcome of the games was the fact that it was great to be with family and a couple of my best friends over the course of a few days. Now it's back to business albeit for only a day before the 4th of July holiday weekend.

The market opened with all indications of going lower. After the first 5-10 minutes, I went short in the 903 area with 2 C's. First target was for 2 points just above the 900 support area. Price hit my target and scaled out first C. Did not give second one much chance to work. Scaled out of entire position before 1000. Result: +4.5

I was only planning to trade until no later than noon as I anticipated low volume and low volatility after the first couple hours. I was waiting to short the first pullback to the 901 resistance area with an order sitting @ 900.75 which ended up to be hit twice between 1055-1115 but did not fill. That was disappointing because I thought I read the market well and had a plan to swing part of the position to S2 area of 895. Once I missed the ride and price went south without me, I closed down the platform and started the three day weekend early. The day was short (literally and figuratively) but sweet with a profit.

Trade Well !

Monday Log - Report From the Road

I'm on the road visiting family and meeting friends so not much time for trading. This morning I was hoping to get in a quick trade in at the open but had no time to get a feel for the market as I needed to get on the road by 1030. In addition my hotel internet connection was slow which further added to a decision to shut it down.

Even though I am away from my trading cave, I remain engaged in what the market is doing and at what levels the ES is testing and retesting. During the day I'll look in on the market when opportunity is available. While driving, I have my XM radio display set for scrolling the primary indicies & ETF's so I can keep updated. By keeping in tune with the market even while away from my desk, it helps keep me in the game and aware of the market making certain levels. A peek in at the charts and a review of the whole days action is also part of my road routine.

Back at the hotel tonight after attending game one of the Cubs / Pirates series where the Cubs won in quick fashion 3-1. Took my two nieces and nephew to their first MLB game. They enjoyed the experience and will hopefully be the first of many I can take them to. Not sure if I'll have an opportunity to trade on Tuesday as friends are meeting me in PIT for game two of Cubs / Bucs so tomorrow is party day. We'll see how my schedule goes and will trade & post accordingly. FYI - Hoping for a gap fade in AM if market is up.

Trade Well !