Trade N Perform Coaching

Saturday, April 5, 2014

ES at TRADE REVIEW FOR 04-04-2014

A SIMPLE APPROACH TO GAINING CONSISTENT RETURNS THAT ANYONE CAN FOLLOW. NO HYPE, NO BS, TRANSPARENCY DAY IN DAY OUT. 1 GOAL, TO MOVE TRADERS FROM BREAK EVEN/LOSERS TO CONSISTENT WINNERS. ITS NOT FANCY, JUST EFFECTIVE.

Friday's market had more challenges than most trading days. NFP or non and farm payrolls presents increased risk to retail traders because of increased volatility and increased trading ranges. In addition to speed at which the market moves increases dramatically. All of this combines for a very challenging environment in which to execute a trade plan which on most other days has good odds of being profitable. Along with the increased technical challenges comes the increased odds that a trader can experience psychological related performance issues. Specifically slipping into a fight or flight mode that often generates over trading, stop lost violations and extreme frustrations. If with all that being said you still chose to trade the open provided quite a clue. The open drive lower often indicates a strong possibility of a trend day down and should set up a trader to look to fade in the counter rotations backed up.

You will notice that even in a trend day tied down scenario to support resistance zones provided great trade location for counter trend trades to the upside. Most zones provided a 2 point plus potential profit on first touch. This type of price action has been absent from the market since January and has made trading conditions more challenging. The last two weeks we have been experiencing more of a two way market and getting these counter rotations at the zones has become much more consistent.

Moving into next week retraces back to the upside should provide great short entry and I would expect the two sided trade to become more prominent. For more detailed look at the trading day please watch the video trade review below.

TRADE REVIEW:

Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential

Tuesday, April 1, 2014

ES TRADE REVIEW 04-01-2014

TRADE REVIEW:

MARKET PREVIEW

Monday, March 31, 2014

ES TRADE REVIEW FOR 03-31-2014

TRADE REVIEW:

Today's trade plan called for caution on the open due to the upcoming fed chairwoman speech at 8:55 AM. The most likely course for the market to follow after the open was to drive up in anticipation of that speech and that is precisely what occurred. After clearing Globex high ES traded to the initial resistance at 1866.50 where we found responsive sellers. The Sellers were able to push ES down for a 7 point rotation and a backside test of Friday's high. ES was much stronger than the NQ; which had difficulty sustaining above Friday's highs and was generally weaker the entire day. The move into Friday's high trapped late sellers in ES and provided fuel for a move up to the initial resistance where we set a marginal new high before Sellers once again stepped back in and gave us the rotation down to Globex high.

Essentially today's move was stolen before the market opened and we were left with a choppy market that was in balance. It is very easy for retail traders to get chopped in an environment like this. Breakdowns tend to get bought and breakouts tend to get sold on balance days. The easiest way to play this is from the outside back to the middle. Conversely the middle of the range tends to be the worst place to initiate a trade.

Overall ES was much stronger than NQ; which found significant selling pressure in the last 15 minutes of the day. I had pointed out in the market preview that NQ has been significantly weaker than ES and that it has been leading ES lower and higher for the last six months. The last two trading days we have seen ES hold up much better than NQ. It is possible that ES is becoming the new market leader which in my eyes could set us up for better two way markets moving forward.

Overall the zones provided great trade location and a significant edge on both first and second touches which is very common on balance days.