Aug 172010

There was a good short opportunity off the open.  The 9:15am EST Industrial Production report added some volatility to the ES, pushing price to the top of our 85.75 / 88 level pre-market.  Price then made a rotation and double top a few minutes after the cash open.  A short could have been taken off this rotation, but volatility was still high because of the market opening so it was a little riskier than normal.  On the next rotation up, price triple topped on a little prints creating a second shorting opportunity for this level.  Price moved right down to the 84 target but not enough contracts traded to get fills.  Given the target was 8 ticks in the money; it was best to just exit the trade and not risk sitting through a pullback.

 Posted by at 10:20 am

  2 Responses to “8/17/2010 Post Trading Analysis”

  1. Aaargh, I knew you guys caught this trade. I hesitated and didn’t take it. Not normally a big deal, but as it turns out, that was the only opportunity at one of my levels for the next 2 hours. thus no trades for me today….

    Would you mind pointing me in the direction of a post where you discuss your entries. I’ve read all your posts and watched your videos so I understand your setups quite clearly. But what is your entry? What causes you to finally pull the trigger? You definitely seem to enter “late”, not trying to time the actual turn, but there doesn’t seem to be a specific method to the price you enter at. Also, do you hit the market or do you limit in?

    Thanks for sharing.

    • We have not publicly discussed our entry techniques because they are discretionary and we often use multiple entries for the same trade. For the most part, the entries we post are simplified to the open of a new PnF bar unless there is a specific situation where we want to point out a good entry location. Most entries are done through hitting the bid or ask with a predetermined number of contracts; some are done using limit orders.

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