Friday, January 28, 2011

Pre Market Analysis 1-28-11 Friday :-)


News: GDP @ 8:30AM, Employment cost index @ 8:30AM, And Consumer confidence @ 9:55 AM Daily chart notes: Pretty much the same as all this week. Been trading at the top of the balance area and started hanging around there for a few sessions.
MP Notes: Same as all this week really. We have been building out value at the top of the range and like i said yesterday the longer we spend up here the stronger the case gets for the bulls.

Trade plan: With GDP out today at 8:30AM and Consumer confidence at 9:55AM we need to let these figures hit the market and see how the market reacts to them. A bullish reaction and ES could trade above the recent range and the uptrend will continue in which case i will wait for a retest of the recent balance area to look for longs. We have to wait for the market to establish a little value above a level before looking to join the move. General rule of thumb is if it is a daily level give it one day, 60 min level 60 minutes, 30 or 15 minute level give it 30 or 15 minutes to establish some value. This is something Kev taught me and it keeps me out of a lot of false breaks. If the market keeps steaming forward then i will look to be a responsive seller above value around the resistance areas at 1299 - 1300 and 1303-1305 area. If ES rejects the break out i will look to be a seller back in the range. I will let the market confirm the rejection by waiting for it to trade back into the range then look to catch a pullback to go with the move lower. In the back of my mind i will keep the weekly neutral IB  and expect a retest of the lows of the week. Patience is key... 








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