Wednesday Log - Take it and Run on Fed Day

Only trading the AM session on Fed day. Generally the morning session is the primary trade(s) before chop settles in as the market waits for the 1415 FOMC announcement.
Took a few scalp trades in the morning session.

Went predominately long with a couple shorts thrown into the mix with longs in 50's, short in 54's and taking a couple points each time. A couple trades did not work but had tight stops and small size once profits were bagged.

Took the rest of the afternoon off as FOMC can be too difficult to play with the high volatility. No methodology identified yet for these high emotional fluctuation periods so best to stay out. Take the profits you've made and wait to play again next day.

Trade Well !

Tuesday Log - Excercise Your Privilege

Entered long from the open in 32's looking for half gap trade. Did not give it enough time to work as I squeezed my stop under the regualr session low. Re-entered long in 36's on pullback after PP was tested and penetrated. Two trades Result: +2.25

Once yesterday close was penetrated, looked for another pullback to go long. Entered in 37's and again in 34's as I averaged in based on anticipated support and combo. Scaled out in 37's and closed trade once price failed to get much beyond yesterday close. Result: +1.50

Went into scalp mode after 1100 using the dance around the PP and small combos as a guide. Took two trades, both longs but the timing was not as good as I would have liked on the last of the two. Net result: +1.25

Backed off for a while before getting long again near pivot during lunch session. Went swing long in 39's and took some heat as price again dipped below PP. Held the trade until after the PM session began. Had defined targets and plan. Scaled 41's, 42's. Result: +6.0

Tried a couple scalps in PM session with small size and tight stops. Did not fair well as I did not get a good read on the market and probably tried to do too much. Pretty much chopping in a range all day which calls for being nimble and taking small bites. Result: -3.25

Today was our opportunity to exercise our privilege to vote. Not only in the off year election but also in market direction. Although it's an off year election, it could be interesting to see market reaction tomorrow as results are realized and the FOMC announces at 1400.

Trade Well !

Monday Log - FOMC This Week

Economic reports at 1000 kept me out of the market for the first hour. Missed the move up and waited for long set-up once pullback to PP occurred around 1100. Entered long in 41's and scalped a point on 1/2 position and closed trade prior to the retrace back to 47's. Result: +2.0

Missed the close/open set up first time thru as price slammed down to 26's. Waited for pullback to 32's. Scaled out in 31's and 30's before going flat as price rebound to 35's. Result: +3.0

Reading combo setups better and expanding the range albeit need to take a couple more trades without pressing. Over the weekend I reviewed my rules and working to tighten up my discipline and trade plan for each trade. Of late I've had a problem with trying to get too much on each trade. A review and update on my rules should help refocus my efforts.

Looking for 1-2 points on half of position should be mechanical and absolute. Been giving away too many profitable scalps as I try to squeeze for the extra tick or two. Not worth the irritation.

It's the beginning of the month, earnings begin to wind down and FOMC meets on Tuesday with macro results announced on Wednesday at 1415. I'll be out of the market that afternoon as I meet a fellow trader for our monthly "FOMC" lunch.

Trade Well !

Happy Halloween

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 !

Thursday Log - Late But Good to Wait

Got a late start today. Did not get in front of the trading platform until shortly before 1000. Quickly identified overnight price action and the first half hour of the regular session. Found the respective angel and demon in play and sized up the current price level. After watching for about 5-10 minutes, I felt the market and took a long from the 48's shortly after 1000. Set scaling targets of 52's and 54's. Got too impatient with the 54 target as it hit my order level but was too deep in the queue for a fill. Result: +8.00

Tried a 1:2 ratio short scalp around noon. Went short at 53.75 looking for 2 points but expecting market to continue up due to strong internals. Price dropped about 1.25 from my entry and ended up getting stopped out. Result: -1.0

The last couple days I've waited and sized up the market 15-30 minutes before entering. I continue to monitor the FF and first hour targets on the EWS spreadsheet and continues to provide good guidance for targets. Had to leave after my attempted scalp trade so that was my last trade of the day.

The new planning sheet is complete and now I'm getting familiar with working with it and determining how best to use/prioritize the information. I continue to focus on combo thinking and letting the trades work although I could have done a better job with my final trade leg. Good to wait and get the feel for the market.

World Series is in full swing and enjoying the games so far. The teams match up well on paper and hoping to see some good games. Can't wait for the series to get back to the National League park so we can suspend the lousy DH rule for the next 3 games.

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!