Wednesday, November 6, 2013

ES Pre Market Thoughts Thursday

ES and NQ Five Day 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:
  • 1770.25
  • 1764
  • 1750
  • 1747
Day Trading Pre Market Thoughts

Trend Thoughts: Staying Long despite the mixed markets. Today weakness in the NQ, strength in the YM (remember only 30 stocks) while the ES played neutral today. NQ still in the channel and ES and YM at top of their ranges. Will  not consider a trend change until a solid close below the 10sma on the daily charts. Could be tricky trading tomorrow with the 3 indexes showing different price movements. 

Trading Day of the Month: Day 5

Special Day or Thoughts: YM large unfilled gap on the daily chart. 8:30 UE claims...market mover?

Gap Fill Thoughts:  Up Gap: If price is below the R1 Pivot and will consider the short at a resistance. WIth YM would have to time with the ES. Down Gap: If price is above the low and has solid support will consider the long at the open towards gap fill. Notes:

Gap and Go Thoughts: Up Gap: Only if the NQ has a monster gap over its high and is support  Down Gap: A monster gap down on YM would consider if the ES in tune. If the 3 index's gap down under yesterdays lows, will look to short with an eye on support levels.  Notes: none

Breakout thoughts for a 15, 30 or 60 minute breakout: NQ and its red down day today offers the most promise for a quick BO. Would need a bounce off support with volume or small gap up that holds its own early and push up towards the high of the channel.  Notes: YM has had a Wide Range green day 2 days in a row. Don't get caught chasing.

Breakdown thoughts for a 15, 30 or 60 minute breakdown: With the trend up I usually stay away from breakdowns but the market is starting to lose steam. Will consider if there is a weak gap with the NQ and below the lows...would need the YM and ES weak as well, trading below today's open. Watch for support!  Notes: none

Fade Long thoughts: In staying with the trend looking for fades off support (false breakdowns) off the low of yesterday, low of 2 days ago, gap fills or possible lunch time fades on a double bottom. Minimum 30 minute wait. Always want to go long with the indexes at support and monitoring the components of the indexes to see if they are in agreement. Notes: none

Fade Short thoughts: Depending on strength would consider a short fade at yesterdays highs. Minimum 30 minute wait. May consider a lunchtime fade short if at resistance. Always want to short with the indexes at resistance and monitoring the components of the indexes to see if they are in agreement. Notes: none

* 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