End of day review 2-11-11 Friday :)

No trades today

WE had an OAIR opening type this morning. ES went higher in a trend type day today. We opened above globex and didn't test any support and buyers moved in right away and the market never looked back. We didn't get any pullbacks into support until lunch time and i was out for lunch. The market pulled back into 1320-1322 level which was also 38% and 50% retrace area which is a good trade set up for going with a trend type day. So no trades for me today. But i am still up for the week (see PNL pic) The market has made new highs on the year and that was expected due to the bullish context. I stayed out of selling resistance at 1320-1322 because of the bullish context. That is a great example of how watching the context and not set ups will help a lot in trading. Before i would just wait for set ups and i would have sold that level without even thinking twice. But now that i have incorporated context into my trading it helped me to pick my trades more wisely and not get caught up in just looking for set ups. So i continue my journey next week and hopefully will not get side tracked to much with work. It is very difficult to try and trade while working at the same time. I constantly have to step away from my computer or i will not be able to complete my pre market analysis before market open. But hey i have to give when i have to because the truth of the matter is i get to spend a lot of time on the computer to learn how to trade while i am at work. And i get paid a nice 6 figure paycheck to do it lol :) Tonight I'm going to the beach for the week end and will clear my head and enjoy my wife and dogs. Till next week...

Pre Market analysis 2-11-11 Friday :)

News: Consumer sentiment @ 9:55AM

Daily chart notes: ES has been pulling back the last few days as expected this week. The pullback has been light and every dip has been bought so need to keep bigger picture in mind. The trend is still up.

MP Notes: ES has been consolidating in the recent balance area of 1310-1322 this week. Yesterday's session saw ES trade down to 1310-1308 level of support and bounce from there. We have a neutral weekly IB and it seems to be playing out. Yesterday ES closed at the top of value on a p shaped profile indicating short covering at the bottom of the range at support which confirms the area and the neutral weekly IB. Globex session has placed value lower down on yesterdays value giving us a slightly bearish macro going into today's session. Over all we are still range bound and need to look at the extremes.

Trade plan: Today we have consumer sentiment out at 9:55AM. I will wait to see how the market reacts off of this report and go from there. In the case of a bearish reaction i will look at 1310-1308 level and look for responsive buyers there. If we take out that level i will be looking at 1304-1306 level where i expect selling to shut off and will be looking for longs back up into resistance areas above. In the case of a bullish reaction i want to be a buyer at support level 1310-1308 or above 1314.50-1316 level. If we break the highs i will wait for value to form above the highs and look for a retest to get long at. Over all we are balancing in a range and i will look to play the extremes. We have strong support at the 1310-1308 level and i expect buyers to still be active there.