Apr 262010

It was an interesting morning where the 1212.50 and 1215.75 levels defined the range of the first half hour.  After the cash open, the ES moved down to 1212.75 but the volume was too small to get an entry for a long fade trade.  The ES then moved up to 1215.50, again one tick short of the short fade entry level.  Finally 1215.75 level was reached on good volume.  In most cases we would not consider fading a level the second time it was reached, but in this case the selling volume became heavy at 1215.50.  I took a short at 1215.50 with the intention of scalping.  After a couple of minutes, the ES broke down so I decided to ride the trade to the 1214.25 target.  Once price reached the 1212.50 level again, I took a long fade at 1215.75, again with the intention of a scalp.  I didn’t like the price action and exited for 2 ticks (and of course it immediately continued in the trade direction past the 1214 target).  All in all, it was a profitable morning with 8 ticks total profit.

NJ Update 3:23pm EST: The 1210.25 level did not offer much support as price sliced right through it and breaking 1210 around 3:15pm EST.  There were ample opportunities to play the 1210 short to 1208.

 Posted by at 10:34 am

  4 Responses to “4/26/2010 Post Trading Commentary”

  1. hey NJ i got the 15.50 short to 14.25 as well.

  2. Congrats caljr. It’s always good when the market cooperates with the plan. 🙂 I actually mis-typed my short entry; it was 1215.75, not 1215.50. Either entry price worked for that trade.

  3. The market has rotated around Fridays close from globex up till now, on very low volume. Its as if the market is waiting on something to happen before deciding its next move.

    • Right, in order for the market to move, trader’s expectations need to change about future values. We need some earnings releases or some other news to shake things up a bit… Technical breakouts like above 1217.50 or below 1210 could also do the trick. Right now there is just little reason for the longer term traders to participate.

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