Tuesday, November 12, 2013

Wednesday Pre Market Thoughts ES

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 down. Preparing the night before takes out all the emotion of possibly considering a trade when the markets open. 

White Lines show the Price Levels areas I will be paying attention to when considering a trade:
  • 1769
  • 1764.25
  • 1759.25
  • 1753
Day Trading Pre Market Thoughts

Trend Thoughts: Another Uneventful day. The fed chairman speaks in the AM so could get a gap either way and some movement. Still favoring Long with an eye on the NQ and the red candle from last Thursday that sticks out and portrays a signal to beware. There is a lot of resistance above to get through to start another advancement. While the ES is above the 10SMA the NQ is not.  More of a mixed market playing support/resistance.

Trading Day of the Month: Day 9 

Special Day or Thoughts: ES shows a False Up day.

Gap Fill Thoughts:   Up Gap: If price is below the R1 Pivot/High area and considered resistance will consider the short. Down Gap: If price is above the low and has solid support will consider the long at the open. Notes: If sitting at support/resistance check pre-market to see if price is considered support or Resistance. 

Gap and Go Thoughts: Up Gap: Don't like for YM or ES, may consider for NQ if gaping solidly over the High Down Gap: If the 3 index's have a bearish gap under yesterdays lows, will look to short and go with the gap with an eye on support levels. Notes: none

Breakout thoughts for a 15, 30 or 60 minute breakout: Don't like a BO trade unless large gap up that holds over the all time highs with the YM/ES or above the R2 with the NQ. Other wise best to stay away. Would only consider if the NQ is above yesterdays high and room to run to the R2 pivot. ES and YM would have  to room to resistance and trading positive as well. If a big gap down, would consider if and volume fulled snap off of support.  Would need all three index's in agreement. Notes: Lots of resistance above, best to pass unless a near perfect setup.

Breakdown thoughts for a 15, 30 or 60 minute breakdown:  Will only consider if trading below yesterdays lows. Would have to be a nice setup among the 3 indexes where their is room to run to support. There is room to run below to the low of the 3 days ago if the indexes can stay below the lows of yesterday. Notes: none

Fade Long thoughts: In staying with the trend looking for fades off support (false breakdowns) off the low of yesterday, S2 pivot area or possible lunch time fades on a double bottom. Minimum 30 minute wait. Don't fade run away trains.  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: If a break below yesterdays lows don't get in front of run away trains. 

Fade Short thoughts: Will consider if near yesterdays high/R1 pivot on the ES and YM and the R2 pivot on the NQ. 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.

* 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