Tuesday, October 29, 2013

ES Market Thoughts Wednesday

ES and NQ 30 minute charts

 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:
  • 1754.50
  • 1742.25
  • 1734.50
  • Channel as marked above
Trend and Trades I May Consider

Trend: Staying Long. Lets see what happens with FOMC statement. ES still in its channel while NQ is choppy.

Gap Fill or Gap and Go: Will look for Gap Fills on an up gap below the R1 pivot or above yesterdays lows using support. If the Index's gap solidly over the R1 pivot (which I would then consider support) or the NQ solidly over its all-time highs, I will consider running with the index long at the open. If the 3 index's have a bearish gap down, under yesterdays lows, may consider shorting with the gap. 

Long: looking for false breakdowns off support levels.Will consider a 15 or 30 minute BO with a modest down gap and the goal to retest the highs.  Would need all three index's in agreement to attempt a BO over the R1 pivot.

Short: No Fades short unless  an up gap then will consider a fake BO at either the R1 or R2 pivot. Nasty gap surprising the Bulls then may consider Breakdowns but aware of support areas.

* 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