Well as expected the market sold off in a hard way. I had the expectation of a complete rotation to test the lows of the week at 1278 area because of the neutral weekly IB (see Thursday 1-27-11 end of day review post) . We have been trading around the top of this range most of the week and we were building out value for a few session so i was expecting a break out but GDP wasn't that great and i think that's what the market was waiting for. Consumer sentiment came out a little better than expected and the market reacted well at first trying to make new highs and there was no initiative activity above the range highs so this was the golden ticket that the market was waiting for. Then the responsive sellers were more than willing to sell the crap out of it giving us a clean long liquidation type day closing at the low tick of the day.
1st Trade I took this trade on the back of the momentum that was entering the market. I wanted to sell higher up at 1294 area which was an area of small support that turned into resistance on the break but i was pulled away due to having a full time job. So when i got back to my seat i saw the market down another 6 points and break globex lows where i got short i had first target at 1286.75 for 3 points and second at 1283 for 6 points. But the market started bouncing and i had to go outside to check on something so bailed for 3 on the second one. Damn i wish i held it longer LOL. All kidding aside 1278 the 1275 were the real targets i had in the back of my mind and both were hit without a problem. As i get to increase my size i will be able to target take off a couple for 2 or 3 points and have extended targets for the rest. Because i know that one of the keys to trading is to maximize your profits. Remember the old saying "let your winners run and cut your losses short" well that is so true and it is crystal clear today.
2nd trade: I took this trade after ES made it low for the day. And i remember Kevin taught me that you don't want to go long after and big trend down until you se the market chop around for a while indicating a change in trend. That along with a few other things is what got me long for 2 points. My target was 4 points at 1278 which market hit my order but didn't fill so i locked in 2 and moved on.