June 5th, 2017 - S&P 500 e-Mini - Trading Activity - Today's Real Money Profit $350, Sim Trade Profit $45

Opening Comments

Small gap lower on the open, nothing to significant.
The world is getting used to tragic events and they no longer impact the stock market significantly.

Real Money Trading S&P 500 e-Mini

A decline out of the opening gap, then into a rally, then sideways.
Today is Whit Monday and therefore a public holiday in many parts of Europe.
So, we may not see much activity coming out of the European open.

Setting up for the open trade.
All signals at the open were for a long trade. Too 2 long @ 2435.75. Target 2436.75
No follow through. 2,000 tick made a lower short term high off the open then declined into a sell signal. Flipped Trade. Took 7 short @ 2434.50. 2 to cover the longs and 5 for recovery. Target @ 2433.50.
The market came down and touched my target, but I did not get filled.
The market then ran back up into 2 consecutive buy signals on the 2,000 tick.
To flip would have required 18 contracts and I do not have enough margin room for that, so I hold and work out a plan B.
So far plan B has been to watch the market fluctuate within the small range it has established.
I either need it to run up then reverse or decline into my original target from where it is now.
At this time we are only a couple of points from the target.
We went through another rally and re-tested the day high then declined back towards the open again.
Getting stuck in this situation has resulted in missing a number of good trades through the day.
But, valuable lessons can be learned from this.
1. We again have the issue of limited capital
2. Learning some patience and how to deal with these events.

The market closed with me still holding 5 contracts short.
The market had move lower into the close, back to near the open price.
I adjusted the target lower using the Fibonacci sequence based on the days activity to identify the potential of the move if the market continued lower.
Set the target @ 2432.50 which is a 76% retracement from the high of the day.
Target was hit overnight, we are flat with $350 profit.

Simulation Trading LW Best TDOM  Bonds

The Best TDOM calls for weakness in the Bonds at the start of the month.
Our short on Friday did not work and was stopped out.
Took 1 contract short this morning on the open @ 155.03125.
Stop @ 156.63750
First exit day 7/6/17

Simulation Trading S&P 500 e-Mini

I messed up and took this trade in the Sim Account.

The SWS range lasted most of the pre-market.
There was a failed rally to breakout then a decline into a sell signal.
6:14 - Took 1 short @ 2435.25. Target @ 2435.75
This was taken out shortly after the open. We are flat with a $45 profit.
Did not do anymore Sim trading as I was watching the Real Trade all day.

Daily Summary & Charts

Today we only have the Real Trade Chart

I will explain the day.

All signals were long coming into the open so I took 2 long.

This entry shows on the 8:30 bar of the 2,000 tick chart, light blue dot.

This did not follow through immediately, the market turned and gave me a sell signal on the 2,000 tick chart.

Notice the lower short term high formed on the open followed by the move lower and the naked close down signal on the 8:37 bar, yellow triangle. 

I went short @ 2434.50 and was net 5 short at this time. Target was 2433.50. The market moved lower and touched the target a number of times, but I did not get filled.

Then the market ran up against me. The second naked close up at 8:50 was the reversal signal.

However, I would have required 18 contracts for the reversal ans do not have enough capital to cover that margin.

So, I hold and make a new plan. Which in this case is to hold an wait for the market to come back to me or if he market runs higher, let it go, find a good reversal point and increase the short position to bring the break even into the trading range.

Both techniques carry a degree of risk, but if we avoided risk we would not be trading.

I have now done both of these techniques successfully.

When the market closed with a bias to the down side I reevaluated the target using the Fibonacci numbers.

On the 10,000 tick chart I placed the 0% mark at the high of the day and 50% level at the trough between the double test of the high. This placed the 100% level just above a support level of the previous day. I choose a target just above the 76% level as a conservative target for the move which if hit would provide me with a good profit on the day.

This was it and we came out of the day with a $350 profit.