Tuesday, October 22, 2013

E-mini ES Market thoughts Wednesday


 ES PRE MARKET THOUGHTS
This a sample of how I do my market preparation. The night before I form a hypothesis of how I will approach the day if the market gaps up or gaps down. Preparing the night before takes out all the emotion and once I see the morning gaps I then refer to my plan for the day. 

White Lines show the Price Levels I will be paying attention to tomorrow along with the Highs and lows of the day and pivots:
  • 1742.25
  • 1735.75
  • 1728.5 (previous gap fill, semi-support, if not for a gap fill wouldn't consider. Could run down to 1717.50 before bouncing)
  • 1717.50
Trend and Thoughts: Staying Long off support and taking false breakdowns off support levels unless there is a bearish gap under the lows of today. I like a test of yesterdays highs and will consider a BO to test these levels.

Will look for Gap Fills on an up gap under the R1 pivot and a down gap above the S1 pivot. If the NQ gaps over its High I will consider running with the index long at the open. If the 3 indexs have a bearish gap down, near there lows today, will look to short  and go with the gap. If I was to short any index I consider the YM first.

Will only consider an ES or YM fade short if the indexs gap up and run into the R2 pivot and the NQ is lagging. The false up day on the NQ daily chart has the shorts sitting at the highs of the NQ. I don't want to risk a short squeeze. 

* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.





 

No comments:

Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE