End of day review 6-1-11 Wednesday

Trade plan and Price action review: (Price action) Wow nice sell off today lol. I saw so many people trying to catch the bottom of this move I was starting to wonder if these people should call them self’s traders. Anyway. The market was trying to put together a rally and price action yesterday was very bullish. Today changes everything on a few different levels. If we can’t find buyers down here then the 1313 level becomes very important on a higher time frame. We could see a sustained move down and even a new down trend start to develop. Either way I am a day trader (I hate that label lol) and I will look at the shorter term trend and trade with it. But it is always good to know what’s going on around you. If you don’t it’s like flying a plane without a radar system. You will be able to see what’s going one right in front of you but will not know what’s happening just around the mountain. On to the price action. We had a bearish reaction to the ADP employment report which came in a lot worse than expected and caused the initial move lower in globex. We had a little bounce into the 1340-1341 level and the market consolidated in a range until the econ release at 10 AM. Both news releases were worse than expected and the market never looked back. I had nice reactions at all my levels today and they all broke except for the 1311-1313 level which is the cvpoc and where the selling shut off at the end of the day. Today was a perfect trend day down and it needed to be treated just like it was a trend down day. There was no reason to try for longs anywhere as at each level the market never gave any reason to get long. The easy trades were looking to sell the rallies into resistance. You were either on in the morning and held for the ride or you sat on your hands. The only good area to join the move was selling the IBL retest which was also the C period poc and the retest of the down trend line on the break back inside of it.

(Trade plan) On to my trade plan. I posted it before the ADP release at 8:30AM. Context was bullish before that and I was looking for support to hold. After seeing the reaction to the news release I changed my bias to bearish and was looking to sell into resistance somewhere.

Trades review: (Hypothetical) See 5 min chart

(Actual) I had a few trades today i didn't write them down so im not gonna take the time to go back and figure them out. Over all i missed the pull back in the down trend to join the move lower so i mostly sat out for the day. i ended the day down 1 point and they are just scratch trades. I didn't take any full stop outs.

Conclusion of the day and thoughts going forward: It was a trend down day and i am happy with my trading for the day. I didn't get a jumpy and try to get on somewhere. I stayed calm and relaxed and if i didnt see a safe place to get on board i didn't do anything. Over all I'm a little pissed that i didn't get anything at all but like i said i followed my game plan and i wasn't down big because i did.

Grades:

Following my plans: B

Following my rules: A

Trade execution: C

Pre market analysis 6-1-11 Wednesday

News: ISM Mfg index @ 10AM, Construction spending @ 10AM

Trade plan and Price action analysis: (Price action) Yesterday ES gapped up and had a slow decline down to support. The context was bullish and buyers were expected at support areas. Buyers drove price back up to the opening prints and closed at the highs above value and shifting the vpoc up from friday. The upside was capped in globex at the 1347.75-1349 level and has traded lower down to the 1340-1341 level. Globex is placing value at the top portion of yesterday value area showing that buyers are still in control.

(Trade plan) With globex trading in the upper part of the Tuesday value area the context remains bullish and the trend is pointing up. We have 2 important news releases out after the open at 10 AM and we could just balance before they are released. The expectation is for support to hold today and my focus will be on the long side at support areas. Depending on the market's reaction to the news releases i will be looking for the globex lows and the 1340-1341 area to hold first. A break below that will bring the 1336-1337.50 area into play where im expecting to see buyers active as well. I remain bullish above the 1333 area. a break below that will turn me neutral short term but still bullish longer term above the 1313 area. Over all i will wait for the market to set up and look for the releases to hit the market before taking a trade unless something really nice sets up.