Apr 272010

Lots of volatility today and lack of conviction. We scalped the first push into the 5 handle in both accounts and then bought 5.50 on strong confidence news. Volatility was just too much to bear so we went out on the retracement to 4 with a 6 tick loss. Not much else to say. I suppose maybe we shouldn’t have bought within 5 minutes of the news. Maybe the timing was off but I have to say I wouldn’t trade that much differently if I saw it tomorrow. I would take more on that first trade though given the mixed sentiment in the cash internals and hold that 5 handle short into 3.50 as on the sheet if I had that trade again. I did sell 5 blind as I thought I would but I felt only a scalp was going to pay me off at the time. Oh well – we can’t win them all can we. As long as we keep close to that I’m happy. lol…

UPDATE: Redemption. Scalped 5.50/6.00 for ticks around the vol three more times, then bought 5.75 into 6.75 for the (almost) gap fill trade. Man is it jumpy today. Be careful guys. So the totals are now -1.25 for the open session then +1.75 for the gap break and three tick scalps for a net of  a half tick on the day less costs which is still negative but if this is as bad as gets we can stand it. Probably done for the day now as volume is REALLY light. Not even 700K traded in the first hour.

 Posted by at 10:16 am

  7 Responses to “4/27/2010 Post Trading Analysis”

  1. After the CC number I faded 5.25 down to 4.50 for 3 ticks when it failed to push through 6

  2. I was out when the massive drop in price occurred, any idea what caused it?

  3. Goldman getting hammered caused the sell-off.

    BTW, I guess we called the interim support right today. Too bad we were too busy to trade it.

  4. Another factor in the selloff might be the downgrade of greek debt to junk

  5. Yeah, although the street saw that coming and it may have been at least partially priced in.

  6. Hello all,

    Hope your trading day went well. I trade the ES also. It was great how the low of the day formed right at the 4.6.10 breakout point. Ten thousand shorts got trapped very quickly.

    Thanks for the wedinar.

    • Hi Art,

      Thanks for the feedback. Price always has to stop or pause somewhere and significant breakout areas are usually in low volume areas. It’s difficult to predict where price will stop after news when traders are searching for a new level of accepted prices. However as you point out, it’s interesting how most of the time price just stops at some significant price level.

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