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 !

September & October Directional Market Bias?

September and October can be pretty wild. Have a plan, fasten seat belts and enjoy the ride!

Friday Log - Trade Labor

Missed the move off the 0830 employment report by 1 point. Had my "Hot Box" trade in place with a long in area of PP/99. So waited for market to open regular hours. Put on three live trades. Two long, one short between the 01-07 areas. Identified the framework as outlined by EWS and played it nicely as I "felt" the market and had good trade ideas going into each sequence. I did not try to do too much, identified targets and scaled out of 2 of the 3 trades using profits from first 2 trades to get a little more from the third. Result: +9.75.

Thinking more and more about this combo concept and seeing how it works time and time again. Slowly building confidence in what I see and getting a bit more in touch with the intuitive side.

Next week will be a short week due to long Labor Day weekend and possible extended time off for this trader in order to see some Cubs baseball in PIT. Waiting for some friends to confirm. In the meantime, have a great weekend everyone! Next week could be a wild one as the "trade laborers" come back from vacation.

Trade Well !

Thursday Log - Watching Paint Dry

Short entry today. Tight range again today probably due to anticipation of monthly employment report tomorrow morning at @ 0800 as well as last week of summer coming to an end. Planning to see low volume tomorrow and the only significant trade opportunities should be in AM. I'm planning to start the long Labor Day weekend early tomorrow as will most other traders.

One thing good about slow days like yesterday and today is that it's an excellent opportunity for the Emini Wizard to conduct class for his membership. Very educational thoughts and observations shared and he really does teach us how to trade. Not what to trade. He's awesome and so is his system!

Took two trades today but both were scratches as I did not like the way they "felt". Listened to the "intuitive" trader and in the end, it was the correct move. Back tomorrow with a short post.

Trade Well !