Mar 052010

The first trade today came up right off the open. The ES entered our 1128.50 fade area we wanted to look at a few minutes before the cash open. After the 9:30 EST cash open, we took the long on the first rotation bounce at 1128.25 with an initial target of 1130. It began to stall at 29.25, so we brought our target in and were lucky to get filled before the market started to move back against us. Remember, you have to LISTEN to the market by watching the speed and cadence of the order flow. Also of note for the morning was that the 25.75 fade long back towards the opening rotation came into play as well. It fell just shy on a low of 26 which could have been bought as well and traded back to the 28-30 area. Remember, we limit our trading to just one trade a day during the first hour in the program we are trading at the moment in the ES, so we only take the first of our potential opportunities that meets our criteria. Finally, note the fade play of the overnight high got run over like a steamroller! If it came up first we may have taken it depending on what the order flow looked like, as it was still a reasonably high probability trade. But that goes to show you that you can’t always call them all right. Our short breakout trade from 27.50 into 26.25 would have worked out fine as well if your bias happened to be geared toward playing the short side this morning.

 Posted by at 10:22 am

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