Monday Log - Shoulder Day

Boring trading day today as I participated in the morning primary move and the afternoon small pop. Tried a few scalps mid-day but for the most part I'll call those a scratch with commish covered. Looking for only 1-2 points, I went long on both the morning move and afternoon move scaling out in the AM and taking it all off in PM as momentum was waned. Difficult day to watch and participate in as the moves were on the shoulders of the intraday chart. Result: +4.50

Looking forward to see how the market reacts in the 1050-1060 area as this was the drop off the shelf last October. There are some resistance areas as well as psyche levels to be aware of. Overnight session should provide so clues as well as the support levels and range today.

Trade Well !

To Be Well Armed is to Be Well Informed - Understand the Issues & Get Involved In What You Believe is Right. Voice an Informed Opinion!

Friday Log - Out For Tea

Pulled off a couple decent trades on Friday with the best one being the participation of the plunge out of the 40's and 38's. Shortened day. Result: +6.5

Had to leave early Friday (thus the late post) in order to get to Washington, DC ahead of possible traffic and to participate in the "tea party" protest on Saturday 9/12 against big government. Glad I went and was there to be counted.

The experience was incredible and hopefully the protests against a government that is out of control will continue to gain momentum, support and participation among all citizens who are beginning to take notice of sensing that "something just ain't right".

As trader's, we need to pay attention to the current discussion by congress to further tax investors/traders. If passed, H.R. 1068 could have a devastating effect on those of us making a living from day trading. The government will be looking for "creative" ways to increase taxes and we need to get informed be be active in voicing our opinion. Review the link provided as well as the petition link regarding the proposed "Trader's Tax".

Trade Well !

Thursday Log - Modus Operandi = Confusion

Entered the day looking for reasonable low risk entries but with more caution than usual. With this being rollover day it was a transitional period between contracts and the M.O. of market behavior on these days did not disappoint. Waited for first 15 minutes after open before first trade made. Got on the long side (wrong side) from 25's and had two point stop as I had expected price to reach 29's before testing lows. Result: -4.0.

Got back in long at 24's on doji candle signal and scaled out at 27's and 28's. Once price busted through 30's waited for re-test of breakout area in low 29's. Scaled out at 31's and 32's. Used the breakout area, combo thinking and PP area as support for second long trade idea. Two trade sequence results: +6.0 / +5.0

Tried a long trade in afternoon session from 34's but tightened stop to break even after price moved a point through 35. Took me out of the trade before hitting 37 target area. Had the right idea and as it turns out a fairly good, low risk entry but didn't let it work properly.

Through EWS, I/we learned a lot these past couple days regarding market behavior on rollover day. The modus operandi worked out as explained/anticipated by 'E' and 'Z' during the past two trading sessions. After more questions and dialogue between members, I feel I/we will be much more prepared and organized for the next rollover period as the market makers play out their M.O. by creating confusion and slight-of-hand.

Trade Well !

ES Rollover

The E-mini contract is divided into four quarters; Mar (H), Jun (M), Sept (U), Dec (Z)]. On the 2nd Thursday of these month's the contract "rolls over" from old to new. This is a transitional period that can provide big swings and high volatility as the market makers adjust positions and play the gap between contracts.

Transition into the new contract by adjusting charts, be aware of previous days "old" contract HH/LL as well as the "new" Globex open from Wednesday 1630 and the overnight HH/LL. There are many transitional considerations to be aware of during the day before and, day of, rollover day. Be prepared and plan for it and we can trade like any other day.

Using EWS has helped take the mystery out of these transitional periods as well as being able to plan better for the trading day ahead.

Trade Well !

Wednesday Log - Get Some Z's

Participated in the AM move by going long from 23's. Saw support in 22's so hopped onboard the move with 2 pt stop. Scaled out on the way up to 29's. Felt good about the trade although stopped out on runner by one tick. Was targeting runner for FF T1 but did not get back in.
Result: +9.0

Tried a low risk divergence short later during lunch session but stopped out above AM high. Sto and volume were divergent so good clue to downward move coming. Maybe (probably) got in too early with too tight of stop (stop set one tick above recent high). Ultimately a 2.25 stop would have worked from my entry but that would have been too much risk for the trade idea. I wasn't going to risk more as I find my legs not to over trade which I must say I've been much more in control with. Result: -0.75

Thursday is "rollover day" where we transition from the ESU9 to the ESZ9 contract. Expect volatility and big swings as the market makers move and groove. So don't forget to transition to the new contract on Thursday. Set your charts and orders by getting some 'Z's!

Trade Well !

Tuesday Log - Scalpers Delight

Today I participated in a few quick scalps that worked out well. Kept my targets to 1-2 points max all day with runners at B/E. Divergent indicators, price dipping up and down over VWAP...just no real indication of any breakout although I was surprised last hour did not at least pop and test overnight high. All day result: +7.50.

Short post today as not much coming into focus to comment on. I'm sure Mr. Market will provide some interesting opportunities to trade and write about as we get deeper into this shortened trading week and traders get their mojo back after a long summer.

Trade Well !