Thursday, November 13, 2008

Thursday 11/13/2008 Trades

What a day! I was expecting a "bounce" off 825, but this turned out to be a full blown rally fueled by all the short-covering in that area. I wish I was trading full-time on days like today :-/

As far as my own trades go, not so impressive. Yesterday, I said I need to work on being patient when entering the market, and that's exactly what I did this morning. I was patient with my entries, and am actually pretty satisfied with the entries. I blew it on the exits though. Now I need to work on being patient on the exits as well. I was also hesitant on entering the market (only 2 trades on the train ride, and both on small size). Ended the train ride up $182.

TradeStation Performance Summary

Trades Plotted on 1-Min Chart

Current FIB Levels (240 min chart)

Market Structure Chart (5-min)

Market Structure Commentary
I love this market structure chart because it puts market action in perspective. So what did the ES do today? ES started off weak and then tested the mid-point, blew threw it and tested the 1st hour high, went back down to the mid-point for a re-test, blew through it and went lower to re-test 1st hour low. From there, we got a bounce back up to the mid-point, but there wasn't enough strength to blow through that, so down it went to the 1st hour low again, except this time it broke through the 1st hour low and tested the overnight Globex lows. It was game over once it broke the Globex low, and next stop was 817.25. I was expecting a bounce in the 825 area, but trading is an art and a science, and you have to be flexible with some of these levels. We got a monster short squeeze from the 817.25 level, and off it went. But even in that crazy up-move, you can see how the Globex low and the 1st hour low was tested, and how price came down when it hit those levels. Same is true of the first hour high. Price went through it, but then came back down to test the 1st hour high area, and then off it went. At this point, I would expect resistance at 916-920.

Please use the comments to let me know if there's anything specific you'd like me to add to the blog.

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