Pre market analysis 5-11-11 Wednesday

News: International trade @ 8:30AM, Treasury budget @ 2PM

Trade plan and Price action analysis: (Price action) ES ended the day up as it built value higher with buyers in control. We took out an important level that confirmed buyers are in control (1351.50). The swing low has been put in at the 1325-1327 level last week and as i said buyers are in full control once again. I'm expecting more upside to come possibly even new highs on the year. Globex has established value higher up giving us a bullish macro structure.

(Trade plan) The plan today is to look to buy PBs into support areas. The buyers are in control and the focus will be on the long side. Shorts will more than likely be taken as scalps. But it depends on how the days unfolds in terms of price action and internals.

End of day review 5-10-11 Tuesday

Trade plan and Price action review: (Price action review). The day opened a little above value and proceeded to go lower looking for buyers, we tested the previous day’s highs and the 1346.25 level where responsive buyers were active. This was a good area to get long at. We then traded up into the 1351-1353 level on my chart and ticked off there on a negative tick divergence and also a VB div. This was a good area to look for shorts to play a rotation back down if you were looking for that. We ticked down for a few points and found support at 1348.00 and bounced from there. Once price didn’t make it to the lows of the day for the rotation you had to start thinking that a break above was likely. So this would have kept you safe from the short side. The market chopped for a bit building out the vpoc. We tested down to the 1348 level again and buyers were still active. This would have also been good for a long again. We traded higher and broke the 1351-1353 level. I was expecting a fast break of this area as there were a lot of stops sitting above the 1352 level. I knew there were a lot of people short this area and that the stops were sitting right there. I wanted to be on that move for the break but was tied up with work all day. We broke above in fast trade as expected and tested the next level above at 1355-1357. At this point it was too late in the day to take any more trades.

(Trade plan review). In my trade plan I was expecting the intermediate term swing low to have been put in and it appears that it has. I was also looking for a break out after having the inside day yesterday and with globex trading higher most of the night. I was looking to buy PBs into support and that’s exactly what happened. I was also looking to be a seller at initial resistance at 1351-1353 level on first test and we got a small rotation followed by a bigger rotation for 3 points. I was expecting a balanced session to take place and we got a balanced session. We did have breaking value today which is a sign of the bulls taking control. So I will continue to monitor tomorrow to see what develops.

Trades review: (Hypothetical trades) #1 There was a long at support first thing in the morning at 1346.25 support/previous day’s highs. #2 could have sold the 1351-1353 area on the negative tick and VB divergence. 3# could have bought at support at 1348 on second test. 4# could have bought the break out at IBH at 1351. (Actual trades) I had one trade today. I was long at 1349 and tried for 2-3 points. The market pulled back a little more than I expected but my 2 point stop kept me in and I was able to take a BE scratch. I liked the trade still but couldn’t stay around to manage it properly. So I waited for something else to set up later. I missed any good opps today due to personal issues. Maybe tomorrow will be a better day for me to trade.

1^st trade: Long at 1349. I felt good before the trade. I was a little nervous during the trade but I stuck to my plan. After the trade I was clear of my emotions from the failed trade.

Conclusion of the day and thoughts going forward: Looking for more upside tomorrow. Will be looking to buy PBs

Grades:

Following my plans: A

Following my rules: A

Trade execution: C a little too early. And if I liked it I should have stuck with it. It ended up being a good trade.

Pre market analysis 5-10-11 Tuesday

News: No news release today

Trade plan and Price action analysis: (This week) On the daily chart it appears that we have put in the swing low from last week and this looking like a PB in the uptrend and higher prices can be expected. Globex has been trading higher over night. I will be looking to buy into PBs into support areas. I have premarket support at 1342.50-1343.75 where i expect buyers to be active on first touch. A break below that will bring in a quick move to test Mondays vpoc at 1338.25 and the 1335-1337 level where i want to see buyers at. A break below that would be a red flag for buyers and i will be looking for lower prices. On the up side i have initial resistance at 1351-1353 and expect sellers there as well on first test. There is no catalyst today so I'm expecting a balanced session to take place and will be looking to buy/sell at the extremes.

End of day review 5-9-11 Monday

Trade plan and Price action review: (Price action review). The market was very choppy today not offering any real good trade opps. It looks like summer time trading is coming around. We opened and chopped right away with 15 min candle sticks stacking up one on top of each other. This is a time were you really don’t want to trade unless you’re playing the small range. We traded down testing the 1335-1337 level and on that little push down into the level and globex lows was the only good opp to try a long. We had a nice tick div along with VB div as well. Other than that I didn’t see anything else. We than traded back up into the middle of the days 5 point range at the time and chopped some more. Some buying came in and we shot up 1343 balance area vpoc and chopped some more. We had a double distribution day and an inside day. We can more than likely expect a break out tomorrow as the chances of having another inside day area slim. (Trade plan review) My morning trade plan called for a balanced session which we got. And I said if we get any buy/selling that it would be short lived and that’s what happened as well.

Trades review: No trades today

Conclusion of the day and thoughts going forward: I followed my plan and was patient for something to set up. I didn’t get anything but I did want a long at 1335 area but due to work I couldn’t take it.

Grades:

Following my plan: A+

Following my rules: A+

Trade execution: N/A

Pre market analysis 5-9-11 Monday

News: No news release out today

Trade plan and Price action analysis: (Last week) Last week saw ES trade lower and this is still a PB in a bigger uptrend on the daily and weekly charts. There is no way of knowing how far it will PB. But i am expecting the market to have put in or is close to a intermediate term swing area on the chart. The past 2 weeks have had over lapping value on the weekly profiles and with summer right around the corner we may see more and more of that. (Globex) has been balanced all night. We traded up into resistance on Fridays session at 1345 and ticked down to 1338 support level. Globex is in the middle of Fridays value and I'm not expecting much to happen today. There isn't any news figures out today or tomorrow so I'm expecting a balanced session to take place.

(Trade plan) Im expecting a balanced session today due to lack of catalyst. We are balanced in fridays value area. I will be looking for buy and sell opps at my levels. If we get some kind of buying/selling in the market i expect it to be short lived. I will be patient and relaxed as i wait for the market to get to my planned areas of trade.