Apr 092010

We have now added twin turbo chargers to our crystal ball. Just kidding. But we have been firing on all cylinders lately. We are trying a new thing for the blog in the last day or so which is to show our one and two tick scalp plays for anyone who is interested. These will be drawn in purple along with the usual green/red/yellow boxes for standard long short positions trading to key levels. As for today, we felt pre-market that 84.75 would be key but likely wouldn’t hold as we needed a flush down to fill the gap on the first major rotation. As I planned pre-market, I ended up just scalping around there for single ticks. We felt the OL at the 83 handle was solid as a rock and felt great about our long trade there. There was massive support on the acceptance side from yesterday to go with the rejection overnight. Pretty much a no-brainer in our eyes. As I continued to scalp around the volatility, NJ bought 83.50 pretty much blind as the risk/reward was so great. Too bad we hopped out at 85.50 but it really was the right thing to do given the order flow at the time – open orders were drying up a bit as well. When we got to the OH you will notice my fear of fading that mentioned pre-market turned out to be warranted. It got really squirrelly there until it stretched out to the 88 high. So obviously we didn’t fade there. I scalped up there one more time and while not on the sheet (didn’t want to crowd it), NJ sold 87.75 back into 86.50 which was also on our pre-market sheet. So basically we called three for three of the key trades that set up this morning. Another nice day for us.

 Posted by at 11:36 am

  5 Responses to “4/9/2010 Post Trading Analysis”

  1. Nice trades off the 83. I got in at 85.25 after the 83 test and got out at 87.25 and 87.50 then got flat at 87 when it stalled and dropped off 88.25

    Looking forward to the webinar next week

    • Good job. We hate the high side like poison right now and did pre-market too. No question the market wants to stretch out to the high side but I wouldn’t trade long off the highs with a gun to my head. The market has no basis for value until 94 really. I would fade 89.75 though at least for a scalp.

  2. Thanks caljr, congratulations on your trades The webinar should be interesting for us. We originally were going to do just one webinar but we had so much information that it had to be divided into three. We’re stunned at the interest. I got word that all seats for the first webinar have already been filled. Luckily, Trevor at MarketDelta is recording and it will be available for replay for anyone who cannot attend or is unable to sign up

  3. Hi Guys,

    Nice trading….was late today so just managed a 6 tic trade from 5.75. I liked your pre-market analysis again. One thing tho….the stop at 82.75? I would have thought the probability of that level being tested was very high. Sorry if that’s a dumb comment but I didn’t see the open today.


    • Sorry, I was rushing when I wrote that and mislabled it a hair. Yesterday’s VPOC was 82.75 which is a big reason why the level was so strong. No real stop on our trades as we don’t want to put our size out there, but our theoretical stop always depends on the target ambition. For a quick scalp 82.25 would be fine. For a longer trade I would give it more room maybe and put it at 81.50 which was the absolute point of no return on the trade. No need for that though. It was NJ’s trade not mine, but I’m certain given it was a 6 ticker he was right under the VPOC in that low volume notch at 82.50 in his mind. BTW, we don’t advocate that smaller and/or inexperienced traders not use stops. But when you trade size you don’t want people knowing where you are moving – especially at key levels like 83 was today. I hope that answers your question.

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