Wednesday, October 30, 2013

ES Market Thoughts Thursday



 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:
  • 1766.25
  • 1761.25
  • 1751.75
  • 1742.50
Trend and Trades I May Consider

Trend: Still leaning Long off support until a break of the ES low. NQ still in its channel.

Gap Fill or Gap and Go: Will look for Gap Fill on a down gap above the LOW. For an up gap looking for a possible fill with an open below the R1 pivot on the ES or YM...would pass on NQ. Must fade off resistance and could be tricky.  A gap below the lows on all three may consider a gap and go short at the open if the lows of yesterday are considered resistance and not support. 


Long: looking for false breakdowns off support levels.Will consider a 15 or 30 minute BO with a modest down gap or up gap with the goal to retest the highs if the indexes are working as one.  Would need all three index's in agreement to attempt a BO over the R1 pivot with a strong gap ... would lean towards the NQ.

Short: Possible 15 or 30 minute Breakdown with a weak gap up or modest gap down and gap fill. Goal the lows of yesterday. Will consider Fades short at yesterday's highs.

* 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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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