WOW WHAT A DAY!!!!!!!!!!!!!!!!!!! :eek: Billy in the IOAMT room mentioned this a.m. that in the "S&P pit" his connections there told him to look for 1281 {some June 2001 level ?} for the S&P futures as the push for the day to get price up there as far as possible. right near the open we were not able to break 1260.75 and the immediate reaction was buying {we had some buy program activity in the s&p futures -- equities buy programs came in a bit later building heavier as the day progressed}. it looked as any chance to cover my 56.50's & 57.50's were a "no go" prior to a new high attempt so i had to cover those positions at a loss at 62.00 and then reverse my 62.50's and 63.50's to the long side {i knew if we came down to break 1260.75 with volume then i would have made the wrong choice}. at 71.50 i reversed to the short side 1/2 of my long position and then down at 70.50 i reversed the second half --- so now i am short again with a cost basis of 1271.00. i had a loss at the 1262.00 covers for the 56.50's & 57.50's { - 5.50 points and - 4.50 points} . the 52.50's and 53.50's had a small gain at the reversal point of 1262 {+ .50 points and + 1.50 points} and then had additional gains up to the reversal back to short at 71.50 and 70.50 {+9.50 points and 8.50 points}. now i am back to short again after a handful of work today, but at least {extremely thankful to Billy} with some very small gains --- just enough to buy a turkey for Thanks Giving! i will not be able to trade friday so i will be back at this monday --- i will have to give my thanks to Billy this holiday for the great heads up --- his connections were right about the push today {on family day for the pit traders}!!!
i don't have any bank accounts --- only brokerage accounts {two with sweep accts and Visa Debit cards} and one credit union account --- i can't stand regular banks! oh, and have a good Thanksgiving with your family --- thats what counts the most!
ok --- sitting here too long at the 1261 area {waiting for 1261.00} so i just covered 1/8th of my position at 1261.50 for +9.50 points.
My next 1/8th targets will be at 1251.00 and 1243.00 ---- after these levels are taken out then i will evaluate the next target levels for covering.
Hi Macro, Suppose you get the other 1/8 off at 1251.00 and the market consolidates at this level for a while then pushes through 1271.00 on volume. Will you take yourself out or will you scale it up? Thanks, Dave
I will keep playing unless there is just some new very positive news release or something that will bring in "heavy volume" buying --- then i may flatten at breakeven (1271 area) for the remaining position and look for a new higher price level entry. there is plenty of news releases this week so i will be watching my usual volume analysis tools to track this and make a decision accordingly. so far i have covered two 1/8th positions since the start of this marathon trade {with +10.25 points for one 1/8th cover and +9.50 points for the second 1/8th cover}, and i have the flexibility to use these profits for additional scale-in positions if needed. I do not mind sideways congestion or consolidation price movements --- i will still play out the trade as i have been doing up to this point. side note --- i will really watch the ES {where volume comes in and how much} when the SPX gets to the 1246 level if the selling continues. a break with a close below this level would be significant due to the close below our previous yearly high for the SPX. this is the main area i would be looking for a bounce from for a possible additional short term upside rally {for the rest of December}. if the selling momentum is strong from economic new releases or corporate news then we may have to go all the way down to the 1230's for the first sign of support in the SPX. this rallies rate of accession has been very "under supported" from a market profile stand point, and if the foreign monies start a rapid exodus from our equities then this selling could pick up speed very fast.
Macro, This method you are trading with the swing play.....is it the same thing Billy does in the chat room? Except he only does intraday trades I assume? Thanks
yes sir --- very similar in nature. my scale-in levels and quantities are very different but the idea of a "previous order replacement" technique is the same. also i use market profile s/r levels to make decisions as to hold positions or add positions.