Wednesday, June 1, 2011

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





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