End of day review 7-11-11 Monday

Trade plan and Price action review: (Price action) ES gapped down on some negative news from EU last night and we saw some follow through to the down side in today’s session. ES opened below value and responsive buyers were active pushing ES back up into the 1324.50-1326.50 level where sellers were active pushing ES down into the globex lows area where it broke below and we had a small retrace and the selling continued. ES tested the 1315-1317 level that broke at first but then was bought back up pretty quickly. We popped back above that area and found resistance at the vwap and the LVN left from the morning sell off. Sellers pushed back down making new lows. ES had a small bounce back up to the DTL and the 1317.25 intraday level that formed. Sellers were active pushing ES down to new lows once again. The market went into chop mode and the selling shut off at the 1310.75-1312.50 level where buyers closed the market back up into the IBL. Value shifted lower and the VPOC was established at 1315. Sellers are in control at the moment.

(Trade plan) I was expecting a mostly balanced session today and we somewhat trended lower instead. It wasn’t a big trend day but still lower highs and lower lows make a trend down day. The sellers were able to keep the market below the 1328 area that I outlined in the AM. Buyers were active at the support areas below on the way down as I expected.

Trades review: (Hypothetical)

(Actual)

1^st trade: Type of Set up: Break and retrace.

(Technical) The sellers were in control in the globex session and we got the break and retrace to go with the trend move from the O/N session.

(Corrections) Im struggling with holding for extended targets right now or taking profits at reasonable areas. I know I need more points but I still think that consistency is more important.

(Emotional) Felt good taking this trade. I liked the set up.

(Execution Grade) B- I was a little early.

(BSO Points) 2.5

Conclusion of the day and thoughts going forward: Like I said above I think it important for me to stick with taking my first profit targets instead of trying to get the Hollywood trade every time. I think its better while im on less than 5 lots. If I were on 5 lots I would exit 3 lots for the 2-3 points and go for extended targets with the last 2 lots.

BSO Points for the day: 2.5

Winners: 1

Losers: 0

Scratches: 0

Grades for the day:

Following my plans: A

Following my rules: A

Emotions in check: A

Pre market analysis 7-11-11 Monday

News: No news release today

Trade plan and Price action analysis: (Price action) Last week Es mostly saw range bound trade. The NFP gave the market a big down day in the premarket release and the day session balanced with buyers in control closing the market on the highs. On the daily chart we could see a little bit of a PB to find more buyers. Globex session has traded lower showing that the sellers are getting more active.

(Trade plan) Sellers have started stepping in to the market in the overnight session but we are still inside the recent balance area that has formed at these highs. With no news release the expectation today is for a balanced session with buyers and sellers active at the S/R levels. The sellers want to see the market below the 1328-1330 level to remain in control. Im looking at this little bit of selling as a PB in the bigger move up and expect buyers to be active at each support area below. 1305 is the 50% retrace of the big move up and i expect buyers active there as well.