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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 Market Balance (5-min Day Session)