Friday, February 20, 2009

Friday 02/20/09 - Options X-Day

It was a volatile trading day, but that also means opportunity so long as there's some order amidst the volatility. On my end, I logged in pretty late this morning, but was able to make a few points shorting the 763 area around 11:30 AM. I then started testing the market to the long side in the 755-757 area around 11:50 till noon. This resulted in a couple of stop-outs, but they were washed with a couple of profitable trades in that area. I then had to step out for lunch, and left an open buy order at 755 with a 6 tick stop. Of course, the buy order got hit at 755 and the trade was quickly stopped out 6 ticks lower. So I missed the low of day by 2.5 points. I had a meeting immediately after lunch from 1:00-1:45 PM, and by the time I returned to my desk, the ES was trading at 773. I was aware of the open gap above at 779, and wanted to short closer to the gap fill. I got a little excited and began shorting the market a little early around the 774 area and took some quick profits and some quick stop-outs. Market was moving around this time; up and down 2-4 points in a matter of seconds. It was pretty cool actually. Thanks to the signals I was getting from my handy ES/TICK chart, I stuck with my short bias and nailed a short at 777, and rode it down for 5+ points wiping out the tiny 6-tick stop-losses and then some.

ES missed the gap fill by a tick, but the market isn't perfect, and I'm gonna count that as a gap fill; it's close enough. Just a reminder, I am updating the Gap Tracker post every evening, and so far we've seen over 76% of gaps filled on the same day!

I know we've seen continued down-side price action, but for some reason, I feel we're gonna fill that open gap above and I am still slightly bullish. As always, biases must be put aside and we must trade in the now moment. Lets see what next week brings. Have a nice weekend!

Gap filled by 2 PM (technically, missed it by a tick)

ES/TICK (3-min)

ES Market Balance (5-min Day Session)

TF Market Balance (5-min Day Session)

TF/TICK (3-min)

1 comment:

  1. I've got a serious case of insanity brewing tonight. If you're around pop on yahoo.

    I think there is a much more simple way for me to work.


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