End of day review 4-14-11 Thursday

ES found support at the 50 % retrace of the initial move higher which was the 1299.00 level. I tried a short here after the level broke by a few points because of the momentum in the market at the time but I quickly scratched it for + 2 ticks as I saw the buyers coming in and I didn’t feel comfortable holding this trade any longer. I couldn’t find an entry to get long at that price so I passed it by being that my analysis was bearish and I was expecting more downside. Any way I tried a long at 1305 area on a pull back and ended up scratching that trade as well. After that I missed my short at my pre planned area at 1309-1311 level and it was good for 3 points. I need to stay at my computer more or at least monitor where the market is at better. Although the market was a little boring today and I needed to get lunch. The journaling of the market price action is helping me a lot with pre planning my trade Ideas so I will continue doing this. Tomorrow I’m expecting to see some more buyers come into the market. I will monitor the globex session and go from there.

Pre market analysis 4-14-11 Thursday

News: Producer price index @ 8:30 AM, Jobless claims @ 8:30AM

Trade plan: The [past few sessions saw ES balancing after an initial move lower. We have been building out value on the bigger composite profile POC area at 1311.00 area trading back and forth around it. I have noticed that this is common behavior around big VPOCs. Globex has built value above that 1305 level and has since broken down to 1299.50-1301 area building out value further and shift POC lower down. This tells me that people are interested in trading lower because value is building lower (acceptance at lower prices) and i will be looking for so follow through as the morning unfolds. I will be looking for short opps on pullbacks into resistance. I have the 1305-1306 area which is still in play as pre market resistance above that is the 1310.50-1312.00 pre market resistance and big CVPOC where i expect sellers to be active on first test. If we break above that then that would confirm buyers are back in control and i will be looking for higher prices. As for longs Im not really focused on the long side today as it would be a counter trend set up and i will have to feel it out when the time comes. Otherwise we could get small rotations at support areas below