Tuesday, March 3, 2009

Tuesday 03/03/09 - Chop and drop

If you're new to the Blog, please take a moment and introduce yourself in the ROLL CALL post.

I started the day with a +3 point trade by going long in the mid 690s. I began shorting around the 705 area in the afternoon, and was stopped out of several trades which went against me, stopped me out, and then proceeded to go 2-3 pts in my favor. That action reversed my P&L to -9 points. I stuck with the short bias and caught a nice short around 708 which erased the prior losses, and reversed the P&L to a net gain of +4.5 points. My timing could definitely have been better, but this just re-emphasizes the importance of a positive risk/reward ratio. 2 wins were able to wipe out 4-5 losing trades.

As I noted yesterday, we had open/un-filled gaps two days in a row, so the probability of a same-day gap-fill was quite high today, and the market immediately filled the gap at the open this morning. We should still be aware of open gaps above at 733 and 752. A short squeeze could easily push us back up to those levels.

Gap Filled in the first 20 minutes

ES/TICK (3-min)

ES Market Balance (5-min Day Session)


  1. Looks like we both were fighting back from drawdowns midday! Good job on making it all back (you seem to thrive in those situations!) and kudos to you if you did it without chucking a 10 lot into the market and stayed honest!

  2. Actually, the loss was on a 4 lot, but the come-back was on 2-lot trades :)


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