Wednesday Log - The Fed Frenzy

Returned from the long weekend today only to be greeted by good old Fed Day. Went into the trading day looking to get involved with the morning move thinking there wouldn't be much more until the emotion of the FOMC announcement at 1415.

The first hour was pitiful as the market was basically in a 4 point range. I adjusted my "1st hour" range to reflect the low as of 1040 which proved to be more accurate a range to work from. Looked for the close/open trade to scalp a couple early points with about a 2 point stop in 69's. Once price went thru yesterday's close, I waited for a slight pullback and entered in the 67's. 1st target was 65's where I took 2/3 of position off with runner remaining for stab at overnight low area in 63's. Price stalled, I didn't like the "feel" of holding the short so went flat in lower 65's. Result: +5.0

Waited for Fed announcement before getting into another trade. Went short @ 1421 in 73's after emotional spike up. I was only looking for a quick scalp with lighter position than first trade of the day. Scaled out, re-set stop to breakeven which triggered before price stabbed into 75's. Result: +2.0

$TICK reading hit +1300 at about 1430 and again about five minutes late on divergent volume as price made new high in 75's. Went short again in high 74's with smaller position than 1st trade of the day, trying to preserve profits already bagged. First target was 72's and last target was a runner for 68's. Result: +7.0

Another day of planning, patience and getting a good feel for the market produced good profits. Using my experience from watching previous price action during Fed Day helped me work the "Fed Trade" without the emotional frenzy.

No losers again today and good trade execution, management and sequence economy. I've been seeing the trades better, my confidence in letting the trades work is sharper and my trade management has seen improvement as I go for the initial target and scale out with a plan in mind. We'll see how the rest of the week goes but feeling strong these past several days...Fed Frenzy or whatever the fuel source, I'm prepared with confidence, not cockiness.

Trade Well !

Monday Log - Under the Influence

Went on an extended weekend jaunt to ACY (Atlantic City for those not familiar with airport codes). My bride wanted to visit with a couple relatives who were planning a trip there so we decided to make the 5 hour drive. So, I'm reporting from Harrah's Casino Resort.

Started my trading day at 0830 by setting up my trading plan and looking to trade the primary move only. I reviewed the overnight action, last weeks range and in particular the Friday range and close. I was tempted to go long from the open around the 54's looking for the half gap move but held off. Instead, I had my short loaded in the 67's which hit at about 0945. Scaled out in 65's, 63's and was looking for last C off at 51's but missed the buy to close by one tick. Once price began to gain some support, I closed the trade in 53's. Result: +9.75

One trade sequence, conservative entry and exits. Well planned, virtually no emotion and I let the trade work. Initial stop was 1.5 points then moved to B/E on balance once 1st profit objective was achieved. One thing I need to consider in the future in regards to my trade management is to take part of my position off by about .5-1.o before a key S/R level. Just missed my final target by one tick, which was one tick above the overnight low. To many traders were running for cover about 1.0 before that support level so might be prudent to exit prior to that price area and leave a runner on (or add) in order to capture additional profit potential.

In the end, I felt good about the trade, my patience and planning for the trade. Maybe being under the casino environment influenced my perspective? Not sure but it sure felt good to trade for no more than an hour and then hit the other game in town.

Probably no trading or post on Tuesday as we'll be driving back to VA.

Trade Well !

Profits - You Want Some Too!

Friday Log - Let the Trades Work

I missed the open and the down side slide so had to wait for the next opportunity. The only thing that was a bit irritating was the fact that I entered a long trade around 1030 in the 60's and 63's hoping to be done trading by lunch time. It was like the trade that would never end until EOD.

Was waiting for price to test the open and/or overnight highs at some point before 1500 and I planned to be out of the trade by the final hour of trading. I gradually peeled off my C's after taking some heat around 1200 as price dipped into 59's with stop in 58's.

The sequence of this trade took over four hours which was a bit frustrating but at least there was profit involved. Scaling out as price ran up from the lows and finally closed the final C of the trade in 64's. What a price game/battle zone in that area. I wasn't going to get trapped in the final hour so started the weekend at least in the last hour of the regular session. Result: +7.25

Again today I had a good feel for the market as I continue to use intuition and trade "what I see" not "what I think" to help drive my trade decisions. Also, I continue to see development in my ability to "let the trades work". This is a result of having a better handle on patience, intuition and being familiar with reading/interpreting my internal indicators that provide great clues.

Trade Well !

Thursday Log - Quadruple Witching Expiry

Today I again saw and felt the rhythm of the market pretty well. Used quick reverses when my bias was wrong a couple of times and managed good stops. Entered the day thinking down towards PP and even had a trade for that area that I took off too early.

Went into the day thinking mostly scalp trades so I put on several RT trades through the day. A bit too quick on exits but overall entry areas were generally sharp and low risk. I'm getting more and more comfortable with tighter stops and getting back into the same trade idea while limiting risk. Although the commish costs stack up, it's part of the business and learning process.

After several round trip trades (7) during the three sessions...Result: +5.25

Quadruple Witching expiration day is tomorrow, Friday. This scenario happens four times per year on the third Friday of each March, June, September and December. The "quadruple" expiration involves Index Futures, Index Options, Stock Option and Single Stock Futures. Could be a volatile day in the market, particularly during the late afternoon. This trader plans to get his trades in during the AM session and take the PM off. We'll see how it pans out.

Trade Well !

Wednesday Log – Steady as She Goes

Trader Tip – Trading is simple but what is difficult is getting to the point where simplicity is achieved, then recognized and finally practiced. We all start out in a similar manner, trading with multiple indicators, hunting for the “Holy Grail”, moving from indicator to indicator, system to system and strategy to strategy. Like a bee pollinating a field of flowers, we search for that “secret” that will bring home the honey pot. Like the bee, we need to concentrate on one “field” (strategy) and become proficient with one plan in order to become efficient. Finding simplicity is the goal, getting there requires an expedition.

Started the day trying to work the pre-market eco reports @ 0830. Went short at an edge thinking we might dip towards the overnight low or the PP. I was wrong and got out once a doji was formed. Not a real bright entry but, had an idea and a plan that did not work out…move on. Result: -4.0

Waited for the regular open and played the half gap which has been a good, high prob trade. Entry was short in 52’s and scaled out down to 48’s. Added an extra C due to the higher probability trade and what I perceived as a good entry price. Well planned trade, specific targets and good patience. Result: +10.25

Waited for a pullback to re-enter short for a scalp, although market seemed as though it wanted to climb higher. Went “back to the well” short in 52’s for a 1 point scalp in 51’s with a runner left of which ended B/E. result: +1.0

Went long in 53’s once market pierced intraday and overnight highs. Had specific targets based on EWS and pivots with a one point stop below the breakout. Played it somewhat conservative with 2 C’s. Could have added a third as a runner once the final target was hit but didn’t. Looked like trending day once 1058 area was taken out. Result: +5.0

Put on a couple short scalps from 63’s in the PM session. One was profitable, 2 were B/E only using one C. Playing the combo strategy and played out nicely. Only looking for a couple. Result: +2.0

Not trying to force my trades, taking what the market gives me, getting in touch with intuition and the market rhythm while better planning my trades is beginning to create more confidence and steady profits. Over trading used to be a problem but I seem to have that aspect under control. So it’s “steady as she goes” the last few days as I implement a better mapped out course of action as well as emotional neutrality.

Trade Well !

Tuesday Log - Pivots of Intuitive Opportunity

Started the day with a short about 10 minutes into the session with a fill in 46's. Set stop above 47.25 which was previous high. Stopped out to the tick before price fell to anticipated targets. A little frustrating but moved on and waited for next opportunity. Result: -2.0

Waited for the first hour range to set in while trying a couple short and long scalps in the 38-40 support area while looking at various timeframes and determine which chart was in play. Turned from scalps to more of a swing bias once price bounce off of PP. Result: +1.5

Bias was now long as I plotted my zones of entry and exit using pivots and combo theory. Got in long in 42's and out with all in 44's while waiting for test of previous regular session high. Result: +2.0

Went long again in 44's and 46's once price tested previous high area which was accompanied by STO and ADX divergence. Scaled out in 47's and 49's as my thinking was that overnight high would be tested and taken out by 1-2 points. Internals had a bias upward and provided the confidence to stick with the trade. Result: +7.0

Took a short off the high in 51's and moved the stop down as I looked for minimum of a couple points which was achieved. Had idea of 45's to be revisited but only put on 1 C for this short otherwise I would have scaled and capture a few more. Result: +2.0

This week I began focusing more on using the MM fractals and pivots to help define my trade ideas and trade management. In addition I find my intuition and "feel" for the market becoming more honed. Although my stops are at times maybe too narrow, the losses are much more under control, anxiety is low and confidence is strong.

Using the pivots, EWS combo system, intuition and getting a feel for market rhythm are becoming much more clear and recognizable for trade opportunities. Trading the edges is the key. I've realized ongoing improvement with my patience to wait for the set-ups while also controlling losses with better entries and stops. Also being able to turn my bias around continues to improve.

Trade Well !