Sunday, November 3, 2013

Pre market thoughts Monday and Weekly Charts

ES weekly Chart

NQ Weekly Chart

 YM Weekly Chart

WEEKLY CHARTS NOTES: ES still looks to be heading to 1800. NQ and YM  may be forecasting a pullback. 

ES Two week 30 Minute Chart
 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.

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

Gap and Go Thoughts: If the Index's gap solidly over the yesterdays Highs (which I would then consider support) I will consider running with the index long at the open. The high of 2 days ago could be a problem. 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. 

Breakout thoughts for a 15, 30 or 60 minute breakout: Will consider a BO with a modest up or down gap and the goal to retest the highs.  Would need all three index's in agreement to attempt a BO. A gap over the High of 2 days ago that holds and I may consider a BO with the shorts scrambling to cover. After several down days potential for a short squeeze push is there.

Breakdown thoughts for a 15, 30 or 60 minute breakdown: A gap down under the lows, and if the lows are then resistance then may consider Breakdowns, but 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 or possible lunch time fades on a double bottom.

Fade Short thoughts: Will target short fades on strength if there is a nasty gap down at the open or the indexes are near the highs of 2 days ago 

* 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