Monday, November 4, 2013

ES Pre Market Thoughts Tuesday

ES and NQ 5 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:
  • 1754.50
  • 1747.00
  • 1742.50
  • 1734.50
Day Trading Pre Market Thoughts
Trend Thoughts: Staying Long unless there is a nasty down gap below the lows of Friday. Will  not consider a trend change until a solid close below the 10sma on the daily charts. NQ and ES still in their respected channels. NQ in an NR7

Gap Fill Thoughts: Will consider Gap Fills on an up gap below yesterdays Highs or a down gap above yesterdays lows using support. Up gap I would lean towards the NQ or YM for a gap fill. Will want to play the trade off support or resistance.

Gap and Go Thoughts: If the ES or YM gap solidly over the yesterdays Highs (which I would then consider support) I will consider running with the index long at the open. The NQ I prefer a gap over the high of 3 days ago or just sit out.  If the 3 index's have a bearish gap down, under yesterdays lows, will look to short and go with the gap with an eye on support levels. NQ prefer low of 2 days ago.

Breakout thoughts for a 15, 30 or 60 minute breakout: Will consider a BO with gap over yesterdays highs or a modest gap down  and bouncing off support. Would need all three index's in agreement to attempt a BO.

Breakdown thoughts for a 15, 30 or 60 minute breakdown: With the trend up I usually stay away from breakdowns. Will consider if there is a gap down under yesterdays lows with room to the lows of 2 days ago. Be aware of support areas.Otherwise will stay away and not fight the trend. 

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.

Fade Short thoughts: Depending on strength would consider a short fade at all-time highs or the high of 2 days on the NQ or yesterdays high on the YM. Minimum 30 minute wait. May consider a lunchtime fade short if at resistance. 

* 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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