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 !

Trading Tips and Best Practices

Beginning July 7th, I will be including in my posts a daily trading tip. There are so many different things a trader needs to be aware of and to remember when considering a trade. An edge must be identified before entering a trade. Remembering to consider certain criteria before pulling the trigger will help improve the odds for success.

The trading tips I will post will be designed to act as reminders and re-enforcement of best practices and notes I’ve accumulated from seminars, webinars, books and other traders. The tips might be simple, obvious or just something to consider. If the tips benefit others that peer into this blog from time to time, then all the better!

Trade Well !

Friday Log – Trades, Weekend, Baseball and the 4th!

Began the trading day pre-market with “The Hot-Box” trade. Overnight price action was narrow. HH was 917.25. Weekly HH and daily HH were also in this area. Set sell order @ 918.75 and was filled right near top once eco report announced @ 0830. Identified first support area at 15.25, scaled out with next target just above overnight LL and target hit. Result: +8.0

Near the open I attempted an early CO trade but failed. Got in long 1 point earlier than previous day close but was stopped out below my support area. Maybe should have waited for confirmation? Result: -4.0
Next trade, I was still thinking long but forgot about consumer sentiment report announcement and got caught. Took opposite side when realized but not before taking net loss on the two trade cycle. I always have the eco reports written down but maybe I should set eco alerts on Outlook? I’ll consider. Result: -3.0

Went into scalp mode short and captured a bit of lunch money after first pullback after eco report. Felt choppy and uncertain so did not give it much room. Result: +1.5

Still looking long since I saw heavy support area in the 908-910 area from yesterday. I initially entered too early and price continued down to test the PP area. Once that area held and was retested, I got in long again and added to position. I was planning to take ½ off at 13.75 (bull trap area) but missed by two ticks. I was going to leave the rest on in anticipation of retest of HH area of 16 but I reset stop once price began to weaken after the spike up to 913 area. Within the hour, price ultimately hit my first target. In hindsight I guess I could have either held stop at BE or taken ½ off and let the rest work? I continue to see many of my trade ideas workout the way I planned but not before being impatient and/or insecure with letting the trade work. An ongoing issue I need to work on and improve. At least I’m aware of the issue and not in denial?

Starting the weekend early so I did not trade the afternoon session as I did not want to get caught up in anticipated end of week volatility and wanted to insure a profitable week. Next week will be a short trade week as it’s time to go see family and see a couple ball games in PIT as the Cubs and Bucs play at PNC. Outside of Wrigley Field, it’s one of the nicest parks in all of MLB to see a game. Friends coming in from Chi-town so looking forward to baseball and “The Strip”.

Friday July 3rd will be the 4th of July holiday observed by the market so there will be limited postings next week.

Trade Well !

Thursday Log – Be Nimble While In Battle

One aspect of trading that is very important and will help a trader realize long-term success is learning to be flexible of their opinion in regards to market direction. This is one of the more difficult disciplines to be conscience of and act on while in the heat of the trade battle. A trader needs to be nimble and flexible once they are in a position. While in the position and the market proves the trader wrong, one must have a plan ‘B’ to fall back on. Planning what might go wrong and what you will do is more important than planning what “will” go right. My execution of this discipline was done well today but definitely need to improve on this awareness and having confidence to execute when necessary.

At pre-market I was set up for another “Hot-Box” trade to take advantage of the 0830 eco reports. No big emotional reaction so no trade entered and LAL positions cancelled.

At market open, I was anticipating a test of the overnight low and possible test of S1 area (888.6) so I went short around 994.25. Market never retested and came back through the open HH and pre-market resistance area. I lowered my stop to one tick above the HH, added 2 C’s thus reversing my bias on the market from short to long. First target was just below PP and PO2 was 2 points above CO. Fairly well executed. After being stopped out with loss of 3.25 points, the opinion reversal play washed out the loss with +8.75. After both trades cycles the net Result: +5.5.

As indicators (TICK, A/D, ETF’s, TRIN) were still finding direction, I was looking to go long on first pullback after strong opening slope with EURP. PB came at 1046 when TC set-up occurred. Got in @ 902.25 but was looking for 900.75 as better wholesale level. Went conservative with the 902.25 and only entered ½ of position. 900.75 would have been full position but never filled. Target was yesterday HH / ON HH and was hit nicely. Too bad it was a ½ position but…that’s the way it goes sometimes. Result: +5.0.

Ran some errands during the lunch time lull and came back in time for the final 45 minutes. Was looking for a CE set-up but never came as ETF’s, VIX and TRIN making new highs / lows. But I was able to spot a SS and TICK divergence around 1524 and entered short after double-top failure. Again, only ½ position entered. Target was previous support of 909-910 area. I was set-up for a possible break thru 909 and trailed stop down. Entered 914.75 and exited 910.75 as price began to strengthen. Result: +4.0

Tried a couple more very low risk tight stop short trades but lost 1.5 total. Not a wise trade going back to the well after getting the 4 at end of day and particularly when the indicators were all pegging their extremes of the day. In future set-ups like this one, I will be more conservative, take the one trade and if successful, end the trading day with a winning trade.

Being nimble while in the heat of battle is important and I was conscience of it today and executed. Just another one of many aspects of what a trader needs to always be aware of.

Trade Well !

Wednesday Log – Early Trade Then Go Away

With the FOMC freight train scheduled to depart at 1415 today, I wanted to get a couple trades in prior to 1100. I generally do not trade the afternoon session on FOMC day due to expected high volatility, long candles and unpredictability. Only if you want to take emotional trades (which in the long term won’t and don’t work to improve P/L) should you be attempting to throw these dice. I made lunch plans for the afternoon with fellow traders and took the afternoon off. Great BBQ!

I took two trades today. First one was the pre-market “Hot-Box” trade in anticipation of the durable goods eco report. ES was trading about in the middle of the overnight range (R1) with R2 just above overnight high and overnight low near the PP. This was a strong set-up for the fade on possible pop and flop. I set sell stops at 898.25, approx. 1.5 points above overnight high and buy stops 1.75 points below overnight low / PP. Price came up nicely at the announcement and picked up my sell order. Added one contract @ 899.25. Exit plan was take 2/3 off just above R1 @ 895.75. Missed fill by 1 tick. Stop was initially just above key resistance of 902.25. Moved stop to B/E once price was hovering around 897 area. Maybe I was too ambitious? Moved stop down once price did not move past 896 but not before only getting a fraction of what I planned. Result: .075 point.

One observation, generally, on emotional spikes pre-market, price does not hang near the high for very long. Today, price was stuck in a 2 point range for several minutes which may be an indicator of strength in future trades. Market later went up after open. I will be observant of the emotional “hang-time” on future “Hot-Box” set-ups.

The last trade of the day was a 4 tick scalp after the open. Went long from 898.25 and targeted 4 ticks (899.25) with two C’s, just below R2 and overnight high. Result: 2.0.

At the end of the day, the plan was executed well…Early Trade and Go Away, albeit some good points left on the table. Planned to trade eco report “Hot-Box” trade and first hour – hour and half of morning session and then call it a day. Prior to leaving for lunch, I anticipated that the range of 900-907 would be the trading channel until the FOMC train left the station at 1415. Upon my return, my trade range area was confirmed. Good planning and/or seeing the TA better? Not sure but I am realizing that planning and identifying key ranges and areas of support and resistance help take the guess work out of the trade. Following ES traders on Stocktwits and Twitter is a blessing.

GDP and Jobless eco reports tomorrow @ 0830. Start planning the “Hot-Box”.

Trade Well !