Sunday, December 29, 2013

Pre Market Thoughts and ES Weekly Chart


ES Weekly Chart

ES & NQ Five Day 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 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 Levels and Trend Lines I will be paying attention to when considering a trade: Does not include overnight highs and lows.

  • 1831.25
  • 1829.50
  • 1823.25
  • 1818
  • 1814.25 
  • 1805

Day Trading Pre Market Thoughts  

Trend Thoughts: Short term is bullish with bullish longer trend. Targeting intraday pullbacks to the long side. When the volume picks up there could be a sharp pullback with the lack of volume pushing this new uptrend. Do not "guess" when the pullback will ocur, let the markets point the way.
Weekly Charts are bullish making new highs and riding the trending upward channel. Is 1900 in the future?

S&P 500 Sectors: Strong Sectors: XLI    Lagging Sectors: XLU  Notes:

   
Special Day Thoughts, Trading Day of the Month: 
  • Day: 19th trading day, historically can favor end of month buying.
  • Month: December ES is historical the best month for longs. 
  • * info taken from Stock Market Almanac, provided more for fun than for a day trading bias 

Reports: 10AM pending home sales

Gap Fill Thoughts: 
  • Up Gap: May consider the fade near 1839.50.  
  • Down Gap: Will consider fading a down gap near 1834.50  Notes: If sitting at support or resistance check pre-market to see if price is considered support or Resistance.

Flat Open:  May consider at gap fill area. 

Gap and Go Thoughts: 

  • Up Gap:Will  not chase
  • Down Gap: If solidly under 1834 with resistance Notes: none

Long/Short Setups after 15-30 minutes

LONGS

Breakout location thoughts for a 15, 30 or 60 minute:  Will consider BO's or pullbacks on a down gap coming strong off support with room to Fridays high. Will not chase any other breakouts, Will consider pullbacks to support.  Notes:
 

Fading Long thoughts: 
  • Major points to  target 1831.25 and 1829.50 at there first test. 
  • Notes: Prefer a a 5 point plus move into the location

SHORTS

Breakdown location thoughts for a 15, 30 or 60 minute: May consider with gap out of short term trend or under 1831 and holding the gap.  Notes:    

Fading Short
thoughts:
 
  • Will pass
  •  Notes: Prefer a a 5 point plus move into the location

Always mark Support/Resistance and confluence zones that could be used for targets, fading, pullbacks 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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Disclaimer

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