Sunday, November 10, 2013

Monday Pre Market Thoughts and Weekly Charts

ES Weekly Chart....Still Bullish heading to 1800?
ES and NQ Two week 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:
  • 1770.50
  • 1762.50
  • 1759.50
  • 1752
  • 1750.50
  • 1742.25
Day Trading Pre Market Thoughts

Trend Thoughts: Nice bounce back. Leaning slightly long, the volume was not as strong as the previous day down volume. The sell off/snap back could be setting up for a ping pong market until the next trend is set. The large red down day still stands out. 

Trading Day of the Month: Day 7

Special Day or Thoughts: After nasty engulfing down down Bulls try to regain the trend.

Gap Fill Thoughts:  Up Gap: If price is below the all time highs would consider the short at resistance.  Down Gap: If price is above the low S1and has support will consider the long at the open. Notes: Be sure to not get caught in "no mans land" use support and resistance when making a decision.

Gap and Go Thoughts: Up Gap: If a flat open after pulling back overnight may consider a quick run at the open using the gap fill as support. Otherwise any gap up will stay away from running with the index Down Gap: If the 3 index's gap down solidly under the S1 pivot will consider a short to target yesterdays lows. Need the S1 to be resistance. Notes: none

Breakout thoughts for a 15, 30 or 60 minute breakout: A gap up not favoring a BO. A gap down may consider if the 3 indexes are bouncing hard off support and all 3 indexes working together. The maximum goal would be to test the highs of  yesterday.  Notes: Don't get caught chasing

Breakdown thoughts for a 15, 30 or 60 minute breakdown: If the 3 indexes are solidly below the PP pivot may consider with a run to the S1 pivot. Would need to check key components of the indexes to see if there is support for the trade. Notes: Careful with breakdowns after strong day Friday.

Fade Long thoughts: Will look for fades off support (false breakdowns) 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:  On a Gap up will consider at highs, alltime high and R1 pivot. A gap down and a strong bounce off support will not fade. Always want to short with the indexes at resistance and monitoring the components of the indexes to see if they are in agreement. Notes: Stay away from fading short when bouncing off support. 

* 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