s & P 500 High for week in already?

Discussion in 'Trading' started by duard, Feb 20, 2007.

  1. on a day like this:

    1) Find the previous broken resistance
    2) Buy hand over fist when it slightly corrects back to new support
    3) Retire
    #21     Feb 20, 2007
  2. duard



    That is what I use MA of ROC.



    #22     Feb 20, 2007
  3. duard


    See attached chart.
    #23     Feb 20, 2007
  4. duard


    Now of course as noted in the real-time diary. I did take my profits early on the reverse long for the reasons stated.

    Oh well....

    Let's see how my current net short works out for the afternoon session and perhaps the week.

    Depending on the price action this afternoon I may hold some contracts overnight as a position trade. Although this market is very momentum driven to the upside on long-term charts.....
    #24     Feb 20, 2007
  5. duard


    Average short price 1462.25 (see above instructions--- "scale in shorts @ 1462.00 -1462.50)

    Now net +2.5 pts.

    Significance: Oft times I quit when I capture the days range which at 10 points is done. However I'm also looking at a potential short for the week and given I currently have a nice position trade going here will sit in front of the computer until the close. But I am not going to let this go against me now. I don't use stops per se all the time but I will set some now.

    Breakeven on my new shorts(1462.25). Then 1460 if and when price goes and stays below 1460 for any appreciable time.

    Lastly this am's bullish activity was so strong we may actually close at or around 1259-1260 and then I will close out flat for the day and week (no postion overnight)
    #25     Feb 20, 2007
  6. duard


    The problem with front-running a possible trend change at the end of the morning session is then you typically have to sit through lunch and the afternoon doldrums before any larger moves occur.

    This can be stressful depending on your appetite for risk.
    #26     Feb 20, 2007
  7. duard


    Now I wish I had taken the 2 pt pullback and quit for the day flat.

    Oh well.

    Still in this miserable short since 10:53 am CST.

    Up 1 pt on this trade and +8.5 pts for the day.
    #27     Feb 20, 2007
  8. duard


    Thank you for taking my stop out.

    Done for the day. Flat.

    Net +7.5 pts in the ES

    Bond market close on the way. But I'm done.
    #28     Feb 20, 2007
  9. duard


    Oh yes and the high for the week wasn't in.
    #29     Feb 20, 2007
  10. duard


    Last post:

    Will be a long post and then closing of this one time thread into how I trade a day.

    First off a recap and critique. + 7.5 pts on three trades. Average 2.5 pts per trade. 1 contract per 10k = $350/10k = 3.5% on account after commsission and fees.

    After reviewing the day:

    My late morning short (10:53am CST) which was the weak trade for the day at breakeven. The russel was leading and breaking into new highs. Therefore it was not inconceivable that we would break higher in the spoos in the afternoon. When lunch was over and we drifted higher on low volume I should have booked ny profits and then re-entered my shorts if so inclined at that time as there was a good chance that we were going higher as the russel led to new highs.

    I should have let my reverse long run to the opposite side at 1462 where my target short was. Of course this is easy in retrospect but again we were in some strong buying and a full run to retest the high was not out of the question at all.

    Things I did right:

    1) I did not do everything right but I MADE MONEY!!!

    2) You do not need to do everything right but you do need to do the most important things right.

    Hope this helps someone. I doubt I'll ever do it again.

    Good Luck
    #30     Feb 20, 2007