Sunday, April 13, 2014

Pre Market Thoughts Monday and Weekly ES NQ Chart

                 
                                                    ES NQ Weekly Charts



                                        ES/NQ Ten Day 60 minute chart
Support and Resistance Key. White Lines: multi price levels and trend lines, Yellow Lines: daily chart major price points, Solid Green/Red Lines: prior day high and lows,  Dotted Green/Red lines: pivot points, Light Blue Lines: prior unfilled gaps. Does not include overnight highs and lows. Price Points to watch.
  • 1866.25
  • 1859.50
  • 1845
  • 1834.50
  • 1830
  • 1823.75
  • 1807.25
  • 1800 
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.
 
Trend Thoughts:  
  • Short term is bearish targeting pullbacks to the short side. and longs with volume support. Short cover bounce can trigger at any time as the markets will not go straight down. Will not chase shorts unless the setup/odds favor the trade. 
  • Longer Term remains in a bullish up trend on the weekly charts. Still have more room to pullback but if so will not be a straight drop with support below.

Thoughts on the Trading Day and the  Month: 
  • Day: 8th trading day: Historically no bias
  • Month: April has been the best DOW month. Past has shown to be a solid steady month. End of month weakness after tax deadline.
  • * Information taken from Stock Market Almanac and provided more for fun and not as a trading bias. (Trading Day 1, 2, 9, 10, 11, 19, 20 historically bullish. Trading Day 5, 14, 16  historically bearish.)

Reports: 8:30 Retail sales

Gap Fill Thoughts: 
  • Up Gap: Will consider fading an UP gap near 1815 -1817 with overnight support.
  • Down Gap: Will consider fading a down gap near 1807.25 with overnight resistance.
  • Note: Always check pre-market to see if price is considered support or Resistance.

Flat Open:  Pass

Gap and Go Thoughts: 

  • Up Gap: May consider if clearly over 1817 and with overnight support.
  • Down Gap: will not chase a short at the open
  • Note: Always check pre-market to see if price is considered support or Resistance. 
 
Long or Short's to Consider after 15 Minutes

LONGS

Breakout/Pullback Long thoughts Will consider pullbacks at support or breakouts if clearly over 1817 with divergent support (above average volume and trending TICKS)Will consider BO's or pullbacks on a down gap coming strong off support with room to resistance.

Fading Long thoughts: 
  • Points to  target 1807 and 1800 and other points mentioned above with TICK divergence and average volume.
  • Notes: Prefer a a 5 point plus move into the location

SHORTS

Breakdown/Pullback Short thoughts: Will consider breakdowns and pullbacks if trading under 1815 without increased volume off support.  

Fading Short
thoughts:
 
  • Points to  target 1816.50 and 1824 and other points mentioned above with TICK divergence and average volume.
  •  Notes: Prefer a a 5 point plus move into the location

Always study the overnight trading and 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