Wednesday, October 16, 2013

E-Mini ES Thursday market thoughts


ES: 30 Minute Chart Price Levels

NQ and YM Daily Charts

 ES PRE MARKET THOUGHTS
This a sample of how I do my market preparation. I try and form a hypothesis before the morning gap for each index. 45 minute before the markets open I then reformulate my plan once I see where the gap is for each index.

White Lines show the Price Levels I will be paying attention to tomorrow along with the Highs and lows of the day and pivots:
  •  1706.5
  • 1691.75
  • 1685.50
  • 1679.50
Trend and Thoughts: NQ and YM formed an up tail and we are stretched on the 60 minute chart. Favoring a fade day today. Staying Long off support, unless we gap down under yesterdays low, and fading any type of breakouts near yesterdays highs if there is a gap up.  Will favor gap fills both ways. A gap up below the R2 pivot and a gap down above yesterdays open.

10am report could throw a wrench into the day. My guess is that it wont cause an explosion up but any surprise could cause a nasty intra day down candle and a race to fill yesterdays gap.

 * 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.
 

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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