Sunday, October 20, 2013

E-Mini ES Weekly Chart & Monday Market Thoughts

6 Month Weekly chart of the ES. Until the trend is broke the blue circle shows a guesstimate of where the markets are heading.

ES and YM 10 Day 30 Minute Charts: YM lagging the ES



 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:
  • 1728.5 (previous gap fill, semi-support, if not for a gap fill wouldn't consider)
  • 1717.50
  • 1706
Trend and Thoughts: Will consider fading a Gap under the R1 pivot and gap downs above the previous days Open. Trend Staying Long, looking for false breakdowns off support levels.

Will consider breakdowns if there is a nasty down candle with some volume and agreement among the index's and room to run. Would favor YM for shorting and NQ and ES on longs. A gap up I would look for a false breakout much like Fridays trade. 

* 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