Tuesday, April 23, 2013

ES Trade review for 04/23/2013

ES opened well above today's "WHITE ZONE"  buyers 1565.50 TO 67.50. I mentioned out of the gate that I was looking for long opportunities only.   THIS IS KEY,  knowing when not to fade, even if you did not get one long off saves the mental pain and frustration, stops the trader from going into a mental spin that could wipe out days of good work.  Most traders have been there and done that.  By knowing  the bias,  you can avoid pain.  

(2) The market promptly moved up to and through the 1565.50-67.50 zone.  1567.50 offered 3 opportunities to get long each with 2 pts or more in potential profit.  Once a zone is trade through that was acting as resistance, it is now support.  We were in a clear trend day up characterized by very small counter rotations, low negative tick readings and no attempt for gap fill. 

The next rotation up brought us to the 1570.25 to 72.25 zone. (3)  Again, not looking for shorts, this offered a good point for a scale,  upon breaking the top side of the 1572.25 resistance, a good long ooppertunity was offered at 1572.25 for a 2point + trade. (4)  As we approached the 1575-1577 zone I mentioned that i was closing out the last of my longs.   I did so at 11am on the dot. Several reasons for this,  1) Heading into New York lunch and trading tends to be low odds affair. 2) I stated a few minutes after the open that: "Buyers in control out of the gate. So I am focused on looking for long set ups until we trade above the 1574 level."  If I am going to start looking for lunch I am certainly not going to press my longs.  As it turns out,  my exit was very timely.   The AP released the news that wasn't from a hacked twitter account. I am sorry for those that suffered losses on such bs.  I pretty much had no trades the rest of the day.   The market seemed off balance from the shock of the move.  I am certain small traders were blown up.  I did mention the the buy sell line at the end of the day was 1570 and we held above to close near the highs.  Last hour is very difficult time to trade.  Algos rule the roost and its hard to get an edge against them.   I think my biggest take away from today was one learned from Mark Douglass  "Anything can happen in the market"  & I dont need to know what will happen next in order to profit"  .  

I had no idea today would be a trend day up, but i did know how to handle the market relative to my game plan.   I did not feel like i missed anything nor did i feel like i needed to step in front of it. I traded my plan.  I took my $$ like I do every day.  The $$ come from consistently following a high odds strategy and game plan and sticking to it.   Anyone can do it.  If you need help,  ask-- I am happy to help.   Looking forward to more fun tomorrow.  

Please give feedback on how I can improve the blog to help others.  Thanks. 

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