End of day review 3-24-11 Thursday

So today was another straight up day after the initial selling into support. It was the same day as yesterday. I tried a short after the open drive opening type and i was looking for the follow through but it never came so i ended up taking a scratch for break even. I missed the 1 good set up i saw today due to lunch and work on the second test. Tomorrows another day but i will only be around half a day. Going to Miami for the week end :)

Pre market analysis 3-24-11 Thursday

News: Durable goods @ 8:30AM, Jobless claims @ 8:30AM

Daily chart notes: ES has been putting in a pretty good bounce and we could see higher prices above 1300 area

30 Min chart notes: ES is still in a uptrend type move from the lows established last week. We have a H&S pattern forming and this will be monitored for follow through.

MP notes: MP shows a big balance area from a few weeks ago and lower value established from last week. We have  been recently establishing value higher and above 1300 would likely see higher prices in ES as this would negate the recent balance areas scenario that i talked about yesterday. So being where we are today responsive sellers could step in or buyers could keep control and push ES to new highs.

Trade plan: ES bottomed last week and has been putting in a bounce that showed pretty good strength yesterday. I can see the 1300 area as the line in the sand for ES and above that could see higher prices below that sellers could regain control. Buyers are in control short term and sellers on the intermediate term. Above 1300 the buyers remain in control and will start to take full control of the market once again which could lead to new highs on the year. The market is in a tricky area right now and could go in either direction. There are no catalyst out after the open and it looks like ES is gonna open above value so we can see responsive sellers active.

End of day review 3-23-11 Wednesday

So the bigger picture was that ES was in a range has been in the top of that range and i was expecting responsive sellers to step in and take market lower. Initially on the open we moved lower and almost hit the 1277 area. ES stopped short by a few points and ended up trending higher throughout the day. I had one good short on a retrace back into resistance and that was about it for the day. I wasn't expecting a move higher today so i wasn't really looking for longs we never really got any good rotations to play off of so just sat back most of the day and kept what i made in the morning. 1295 area is kinda the line in the sand for sellers. If buyers can take it above i would expect to see higher prices. Below sellers are in control.

Pre market analysis 3-23-11 Wednesday

News: New home sales @ 10AM

Daily chart notes: The daily chart shows a massive uptrend and we have recently seen some selling with a bounce coming in. We are in a short term down trend and bouncing within this down trend so the market can really take off in either direction. Yesterday was an inside day and we could see a break out today. we have retraced back to 50% - 61% of the move from the top.

30 Min chart notes: the 30 min chart shows a recent uptrend and now some sideways trade has been taking place. This is the area that buyers or sellers could take over so stay vigilant and expect the unexpected.

MP Notes: MP shows me that we have been in a recent balance area from around 1292s-1242s area and we have recently been trading sideways at the top of this recent range. Like i said before the market can go in either direction from here but the logical move would be to the downside being we are at the top of the area (responsive sellers). We have a neutral weekly IB so i expect support and resistance to hold for now.

Trade plan: ES has gapped up approximately 15 points 3 days in a row and built acceptance higher each time. We are at the extreme of the recent balance area so i will be looking for responsive sellers to be active around here especially with the neutral weekly IB. We had an inside day yesterday so a break out is likely and i will be cautious at the first resistance and support levels. If we break the globex lows a test of the 1277 area POC is likely and i expect buyers to be active there. For the upside i expect responsive sellers to be active at the resistance areas on first test. A break above 1298-1300 area is a red flag for sellers and higher prices can be expected. Today we have new home sales out at 10AM and im expecting a balanced session leading up to that.

End of day review 3-22-11 Tuesday

Not really much to talk about any ways the day was as boring as it gets and i was very busy with work today so no trades for me. Till tomorrow...

Pre market analysis 3-22-11 Tuesday

News: No notable news out today

Daily chart notes: The market has recently been putting in a bounce the past few sessions and volume has been noticeably weaker. We have started a down trend and i need to monitor this bounce to see how it unfolds. We are approaching the 61% retrace of the move down at 1300s area so i will watch for sellers to be active again there.

30 Min chart notes: We have recently been in a down trend on the 30 min and now have started trending higher. Sellers could take over at any time so i will watch for them at support areas.

MP Notes: Yesterday appeared to be a short covering type of day and globex has balanced over night. We are at the top of the recent balance area and last week's highs and can expect responsive sellers to be active around here.

Trade plan: ES has been trading back and forth on the daily time frame not really giving any clues as to which direction it wants to go in. I can see a recent balance are forming around 1298 to 1242 area. If this is the case i can see ES trade back down to retest the lows of the balance area and we can see responsive sellers active up here. Over the past few days ES has been moving in an uptrend so looking for support to hold.

Didn't have time to finish Pre market analysis today...

Having rules and then Having rules...

Do you have a set of rules? I do but up till know i never really had a set of rules. I kept them on my trading rules page but never really realized the importance of having and trading by a set of rules. I figured , OK i need rules let me through a few together and then i have rules. But im starting to realize that isn't how it works. Truly having rules means that you foloow them and you fully understand them and live and die by them. If you dont then you will fail. Just like if you drive a car around on the street you have to follow the rules or you will get into an accident or get a ticket. Same with trading. If you dont follow your rules you will get smacked again and again untill you realize it. Thats where i am right now.So what i have done is print out 5 copys of my rules and put a copy every where i am the most (work desk, home desk, truck, back pocket etc..) I read them every chance I get. And i made a rule that if i take a loser trade i read them again 10 times. My goal is to really know them and add to them as needed. I want to know them well enough that i can recite them by memory.