Monday, October 21, 2013

E-Mini ES Tuesday Market Thoughts


YM and ES Daily Charts showing the NR7


ES 30 Minute chart and support

 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:
  • 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
  • 1706
Trend and Thoughts: Daily Charts have a NR7. I look for a movement after a NR7 especially with the 2 economic reports on tap. YM is the weakest of the 3 indexes. 

Unless there is a gap down that shocks the Bulls Staying Long with ES or NQ off support until proven wrong. Looking for false breakdowns off support levels. Don't like the breakout play.

Will consider breakdowns trading below yesterdays low and room to run to support. With the trend up I want the 3 indexes to agree and leary of support underneath. 

Will look for Gap Fills on an up gap under the R2 pivot.  Gap downs if the open is above yesterdays Low.  

* 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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