May 1st, 2017
A new week, a new month.
Did not do anything in the pre-market.
Was working on strategies and theories, updating some spreadsheets, looking at money management.
Also was considering how I was going to manage the long open trade we have been sitting on since Thursday.
I have learned a lot from Larry Williams and subscribe to his Larry Williams TV broadcast.
This is a market synopsis that he does each weekend that provides a good overview of the markets and potential upcoming trading opportunities.
Anyone who is interested can go to www.ireallytrade.com.
Larry TV cost money, but there is a bunch of free stuff on the site that is good and occasionally there will be a link to an old program that is interesting for someone wanting to analysis the service.
Anyways, based on Larry's analysis we should have a couple of good days in the beginning of May before the market pulls back to test last weeks opening gap.
So based on this I am putting a stop on our trade below that gap and a target up near the all time highs.
Now for the simulation trading.
We will take the Open Trade in the simulation today.
Short signal on the open in the 30 min chart, went short 2 @ 2385.75.
Set target for 1st contract for one point target @ 2384.75 and 2nd contract target at a previous pullback low of 2383.25.
The market moved up about 8 points from the low in the pre-market so we should expect a pullback of some sort.
First contract target hit with ease. The 2nd contact took a little longer, but hit as well.
Covered both contracts for a good profit.
Both our 5 min and 2,000 tick charts are making lower highs so we have a short term down trend forming in those charts.
Our 9:00 am 30 min bar gave us a sell signal, which I missed trying to get in a quarter cheaper.
Would have been a quick and easy point.
A few minutes later the 10,000 tick charts gave a sell signal, picked up one point on this trade.
We have now pulled back to open. Should expect some support here.
Another short continuation trade on the 2,000 & 10,000 tick charts.
30 minute chart is showing good support for a short as well.
Took 1 short @ 2381.25.
The 30 minute bar closed with a sell signal, but at a higher entry point.
Looks like the market may have found support here.
I will adjust my target in the open short to break even.
The market moved up and gave me a long signal on the 10,000 tick chart.
Reversed the short to a long and set the target at 1 point.
Need 4 contracts long to cover the loss and make a bit on this trade.
Market blew through my target giving me back what I lost and a bit more.
We are now back into our overnight highs and where the regular trading hours opened.
I got a near simultaneous buy signal across all charts at 10:00 am.
Went long 1 contract @ 2386.25.
Hit 1 point target easily.
Should expect to see some resistance here at the overnight high, which is pretty close to the Friday high as well.
Looking for a possible double top to form.
This is were things get tricky.
A pull back then a rally back into the days high.
Is this a potential breakout or just another test of the high?
Not taking long signals in the 2,000 tick or 5 min because we are to close to resistance.
Wait for a breakout on the longer time frames.
OR, a failure to break through and a reversal to short.
This is also the time of day where we could start to go sideways.
OK, We are officially going sideways.
Any move up runs into resistance at the day high and moves lower get support at the bottom of the range.
We wait for a breakout to show us the next direction the market will take.
We saw a strong and sudden break to the downside right back to the previous support level.
Was away from the computer when this happened so did not take any signals.
Which was good, because the market bounced right back up.
Strange and irrational behavior.
From there the market ran up, broke through resistance and gave almost simultaneous buy signals on all charts once again.
Took a long position at 2388.00 which was taken out within a minute at a 1 point target.
So, I took another position right away at 2389.25 trying to catch some more of this breakout run.
This one was taken out pretty quickly as well.
The market pulled back a bit on the 2,000 tick chart and gave me a buy signal on the 10,000 tick chart which I took for 1 contract @ 2389.25 with a 1 point target.
Got a quick bounce off the pullback and was taken out on target.
About $480 up on the simulation account at this time.
Need to start focusing on the Real Money account.
I have the long trade still in play.
The entry point was 2386.75 on Thursday.
I have a target at 2394.50 which is just under the historic highs.
Current price is 2390.50.
Is questionable whether we will test that historic high today.
But, we need to be ready to adjust that target if we get some more strong movement to the upside.
We saw the market pull back and test support at the break out level, this should be expected.
Then a rally into a lower high and a sell signal in the 2,000 tick chart.
Took 1 short @ 2388.00 with the target at 2387.00
Target was hit taking profit in the simulation to $531 for the day.
We are now testing the support level.
We could see a bit of a sell off this late in the day as well.
Which is exactly what happened.
I am a bit concerned about the way the market traded today and how it closed.
I need to consult with Larry Williams regarding the Outside Day with the up close in when this close to the resistance of the historic highs.
I will let you know what he says.
Chart for today's activities
Yellow triangle is a short entry
White triangle is a short cover
Blue circles arrow is a buy
White circled arrow is a buy cover
The numbers above the bar are the net position.
Did not do anything in the pre-market.
Was working on strategies and theories, updating some spreadsheets, looking at money management.
Also was considering how I was going to manage the long open trade we have been sitting on since Thursday.
I have learned a lot from Larry Williams and subscribe to his Larry Williams TV broadcast.
This is a market synopsis that he does each weekend that provides a good overview of the markets and potential upcoming trading opportunities.
Anyone who is interested can go to www.ireallytrade.com.
Larry TV cost money, but there is a bunch of free stuff on the site that is good and occasionally there will be a link to an old program that is interesting for someone wanting to analysis the service.
Anyways, based on Larry's analysis we should have a couple of good days in the beginning of May before the market pulls back to test last weeks opening gap.
So based on this I am putting a stop on our trade below that gap and a target up near the all time highs.
Now for the simulation trading.
We will take the Open Trade in the simulation today.
Short signal on the open in the 30 min chart, went short 2 @ 2385.75.
Set target for 1st contract for one point target @ 2384.75 and 2nd contract target at a previous pullback low of 2383.25.
The market moved up about 8 points from the low in the pre-market so we should expect a pullback of some sort.
First contract target hit with ease. The 2nd contact took a little longer, but hit as well.
Covered both contracts for a good profit.
Both our 5 min and 2,000 tick charts are making lower highs so we have a short term down trend forming in those charts.
Our 9:00 am 30 min bar gave us a sell signal, which I missed trying to get in a quarter cheaper.
Would have been a quick and easy point.
A few minutes later the 10,000 tick charts gave a sell signal, picked up one point on this trade.
We have now pulled back to open. Should expect some support here.
Another short continuation trade on the 2,000 & 10,000 tick charts.
30 minute chart is showing good support for a short as well.
Took 1 short @ 2381.25.
The 30 minute bar closed with a sell signal, but at a higher entry point.
Looks like the market may have found support here.
I will adjust my target in the open short to break even.
The market moved up and gave me a long signal on the 10,000 tick chart.
Reversed the short to a long and set the target at 1 point.
Need 4 contracts long to cover the loss and make a bit on this trade.
Market blew through my target giving me back what I lost and a bit more.
We are now back into our overnight highs and where the regular trading hours opened.
I got a near simultaneous buy signal across all charts at 10:00 am.
Went long 1 contract @ 2386.25.
Hit 1 point target easily.
Should expect to see some resistance here at the overnight high, which is pretty close to the Friday high as well.
Looking for a possible double top to form.
This is were things get tricky.
A pull back then a rally back into the days high.
Is this a potential breakout or just another test of the high?
Not taking long signals in the 2,000 tick or 5 min because we are to close to resistance.
Wait for a breakout on the longer time frames.
OR, a failure to break through and a reversal to short.
This is also the time of day where we could start to go sideways.
OK, We are officially going sideways.
Any move up runs into resistance at the day high and moves lower get support at the bottom of the range.
We wait for a breakout to show us the next direction the market will take.
We saw a strong and sudden break to the downside right back to the previous support level.
Was away from the computer when this happened so did not take any signals.
Which was good, because the market bounced right back up.
Strange and irrational behavior.
From there the market ran up, broke through resistance and gave almost simultaneous buy signals on all charts once again.
Took a long position at 2388.00 which was taken out within a minute at a 1 point target.
So, I took another position right away at 2389.25 trying to catch some more of this breakout run.
This one was taken out pretty quickly as well.
The market pulled back a bit on the 2,000 tick chart and gave me a buy signal on the 10,000 tick chart which I took for 1 contract @ 2389.25 with a 1 point target.
Got a quick bounce off the pullback and was taken out on target.
About $480 up on the simulation account at this time.
Need to start focusing on the Real Money account.
I have the long trade still in play.
The entry point was 2386.75 on Thursday.
I have a target at 2394.50 which is just under the historic highs.
Current price is 2390.50.
Is questionable whether we will test that historic high today.
But, we need to be ready to adjust that target if we get some more strong movement to the upside.
We saw the market pull back and test support at the break out level, this should be expected.
Then a rally into a lower high and a sell signal in the 2,000 tick chart.
Took 1 short @ 2388.00 with the target at 2387.00
Target was hit taking profit in the simulation to $531 for the day.
We are now testing the support level.
We could see a bit of a sell off this late in the day as well.
Which is exactly what happened.
I am a bit concerned about the way the market traded today and how it closed.
I need to consult with Larry Williams regarding the Outside Day with the up close in when this close to the resistance of the historic highs.
I will let you know what he says.
Chart for today's activities
Yellow triangle is a short entry
White triangle is a short cover
Blue circles arrow is a buy
White circled arrow is a buy cover
The numbers above the bar are the net position.
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