ES and NQ Weekly Chart
ES and NQ Five Day 30 minute charts
ES PRE MARKET THOUGHTSThis 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 down. Preparing the night before takes out all the emotion of possibly considering a trade when the markets open.
White Lines show the ES Price Level areas I will be paying attention to when considering a trade:
Thanks for the positive feedback on my trading plan, always feels good to know it was of value to ones trading experience. I had a few suggestion's from readers for the Blog to add my sector strength and range thoughts.
S&P 500 Sectors: Strong Sectors: XLF and XLV Lagging Sectors: XLU and XLK
Range Thoughts ES: A modest up or down gap 10-12 point range ...nasty bearish morning and below fridays low and could get extended range on the day 15-20 points
Reports: 10:00 AM pending home sales
Special Day Thoughts, Trading Day of the Month: Day 17
Gap Fill Thoughts: Up Gap: If price is below the R1 Pivot and considered resistance will consider the short. Down Gap: If price is above Fridays lows will consider the long at the open is sitting at support. Notes: If sitting at support/resistance check pre-market to see if price is considered support or Resistance.
Gap and Go Thoughts: Up Gap: A flat to moderate open may consider going long, will not chase an up gap. Down Gap: Will consider shorting with a large gap down under the lows of Friday. Will keep an eye on support below and pass if support is in the way of an exit goal. I want the indexes in agreement or will pass. Notes: none
Thoughts on Long or Short Setups after the first 30 Minutes of Trading
(Always evaluate market after 30 minutes unless noted)
LONGSBreakout thoughts for a 15, 30 or 60 minute breakout: I will not chase a gap above the highs of Friday. May consider a BO or pullbacks with a flat or modest down gap with Fridays highs or R1 pivot as a target. Will consider BO's or pullbacks with a large down gap that has traded bullish off support. Notes:
Fading Long thoughts: In staying with the trend looking for fades off support (false breakdowns) near the price points stated above. Minimum 30 minute wait. As always don't fade run away trains if bearish early, let the run play out. 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:
SHORTSBreakdown thoughts for a 15, 30 or 60 minute breakdown: Will not consider any breakdowns unless extremely bearish for 30 minutes after a gap up. Extremely bearish is breaking support levels with a long red 30 minute nasty down bar with volume. If that scenario unfolds then I may consider shorting pullbacks on light volume provided the bounce is not coming off support with strong volume. Indexes must be working together Notes: Best not short with the market trend up
Fading Short thoughts: The indexes gap up I may consider a fade near R1/R2 pivot or trading into these areas after 60 minutes. Otherwise will not fade short with the trend up. I want the 3 indexes in agreement. 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
Always mark Support/Resistance and confluence zones that could be used for targets, fading and breakout/breakdowns.