June 7th, 2017 - S&P 500 e-Mini - Trading Activity - Today's Real Money Profit $600, Sim Trade Profit $0
Opening Comments
Yesterday was anything but boring.
We ended up in the same predicament as on Monday.
Unfortunately, we are still there.
The market did not help us out last night.
From the open it ran back up into the mid-point of yesterdays activities.
Real Money Trading S&P 500 e-Mini
Still holding 7 short positions from yesterday.
Average entry price is 2428.75.
Targets are set at.
3 @ 2427.50
3 @ 2426.50
1 @ 2425.50
We will re-access these targets as the day progresses and carry on with Plan B.
After running up the market found resistance and pulled back to re-test yesterdays low then rallied back into the open.
A little bit of activity around the European open, but nothing significant.
Signals coming into the open are for a short entry on the open.
Short entry at 2432.00 Target at 2431.00, would have followed through with target hit.
The market then rallied into yesterday's morning high, found resistance and declined 7 points from there into my first target @ 2427.50, yielding a profit of $178.
We are now net 4 short.
We saw good support at this 2428 level yesterday and it is holding again today as the market advanced off this level.
The 10,000 tick chart rallied back about 50% then declined forming a lower high and the market started to decline back towards support.
Adjusted targets
2 @ 2427.50
2 @ 2425.50
The market broke through support and probed lower taking out all the targets.
We are now flat with $600 profit.
Switch to Sim Account for the rest of the day.
Simulation Trading LW Best TDOM Bonds
Our order to cover @154 28/32 was hit.
We exit this trade with a $155 profit.
Simulation Trading S&P 500 e-Mini
Yesterday was anything but boring.
We ended up in the same predicament as on Monday.
Unfortunately, we are still there.
The market did not help us out last night.
From the open it ran back up into the mid-point of yesterdays activities.
Real Money Trading S&P 500 e-Mini
Still holding 7 short positions from yesterday.
Average entry price is 2428.75.
Targets are set at.
3 @ 2427.50
3 @ 2426.50
1 @ 2425.50
We will re-access these targets as the day progresses and carry on with Plan B.
After running up the market found resistance and pulled back to re-test yesterdays low then rallied back into the open.
A little bit of activity around the European open, but nothing significant.
Signals coming into the open are for a short entry on the open.
Short entry at 2432.00 Target at 2431.00, would have followed through with target hit.
The market then rallied into yesterday's morning high, found resistance and declined 7 points from there into my first target @ 2427.50, yielding a profit of $178.
We are now net 4 short.
We saw good support at this 2428 level yesterday and it is holding again today as the market advanced off this level.
The 10,000 tick chart rallied back about 50% then declined forming a lower high and the market started to decline back towards support.
Adjusted targets
2 @ 2427.50
2 @ 2425.50
The market broke through support and probed lower taking out all the targets.
We are now flat with $600 profit.
Switch to Sim Account for the rest of the day.
Simulation Trading LW Best TDOM Bonds
Our order to cover @154 28/32 was hit.
We exit this trade with a $155 profit.
Simulation Trading S&P 500 e-Mini
The market broke through support, probed lower then rallied back.
I keep missing the trades, not focused enough.
The market has made a series of higher highs, higher lows and rallies into buy signals.
Now has advanced back to the mid morning high and appears to be heading for the day high.
Not focused I will not trade.
Calling it a day
I keep missing the trades, not focused enough.
The market has made a series of higher highs, higher lows and rallies into buy signals.
Now has advanced back to the mid morning high and appears to be heading for the day high.
Not focused I will not trade.
Calling it a day
Daily Summary & Charts - Real Money Account
The chart below illustrates the events over the last two days.
My core strategy is to enter and exit taking small quick trades at low risk entry points and normally I would not hold a trade for an extended period of time.
However, due to the limited capital and margin issue from time to time I get stuck in a trade that I cannot flip my way out of.
That is when plan B kicks in.
Plan B is to take a longer term view of the market and bring in additional indicators and tools for managing the trade.
In this case, based on daily charts and historical market action at the beginning of June it was expected that the market would be choppy and weak in the first few days of the month. Around the 7th day of the month the market is expected to strengthen so we know we have a small window to work the short side.
The Friday Low presented a very strong support level with two tests on Monday and one on Tuesday before finally breaking through.
A strong support level such as this can indicate that a number of participants are buying at this level and conversely will probably have their stops just below. If these stops start to be taken out we can see a break on high volume and volatility.
This is a technical break rather than a structural break and if not supported by market sentiment can be a false break followed by a rally as buyers come into take the stops out and then push the market higher. This is as much about psychology as technical's.
We are herd animals all trained to do the same thing. So, we all put our stops in just below support thinking that if support is broken there will be a steep decline.
As we see in the chart today's break was false and the market rallied back with some strength.
This logic came into play when adjusting my targets over the course of yesterday and today.
But, one of my first objectives was to get my average price up to a break even level above support.
I achieved this by taking 2 more contracts short on the first rally from my entry point.
This allowed me flexibility to either take the positions out at break even above support or wait and see if the market could break down.
The logic of staging the targets was to allow me to get out of some positions above support to reduce some risk while holding some positions should a break occur.
Unloading some positions also provided additional flexibility if the market had run higher after that 3rd test of support, I could have added more positions later to readjust my average price again.
The logic to place the other targets just below support was based on considerations mentioned above.
I could have held 1 contract in case the market ran lower, but all things considered that was not anticipated and I'll take the profit.
The chart below illustrates the events over the last two days.
My core strategy is to enter and exit taking small quick trades at low risk entry points and normally I would not hold a trade for an extended period of time.
However, due to the limited capital and margin issue from time to time I get stuck in a trade that I cannot flip my way out of.
That is when plan B kicks in.
Plan B is to take a longer term view of the market and bring in additional indicators and tools for managing the trade.
In this case, based on daily charts and historical market action at the beginning of June it was expected that the market would be choppy and weak in the first few days of the month. Around the 7th day of the month the market is expected to strengthen so we know we have a small window to work the short side.
The Friday Low presented a very strong support level with two tests on Monday and one on Tuesday before finally breaking through.
A strong support level such as this can indicate that a number of participants are buying at this level and conversely will probably have their stops just below. If these stops start to be taken out we can see a break on high volume and volatility.
This is a technical break rather than a structural break and if not supported by market sentiment can be a false break followed by a rally as buyers come into take the stops out and then push the market higher. This is as much about psychology as technical's.
We are herd animals all trained to do the same thing. So, we all put our stops in just below support thinking that if support is broken there will be a steep decline.
As we see in the chart today's break was false and the market rallied back with some strength.
This logic came into play when adjusting my targets over the course of yesterday and today.
But, one of my first objectives was to get my average price up to a break even level above support.
I achieved this by taking 2 more contracts short on the first rally from my entry point.
This allowed me flexibility to either take the positions out at break even above support or wait and see if the market could break down.
The logic of staging the targets was to allow me to get out of some positions above support to reduce some risk while holding some positions should a break occur.
Unloading some positions also provided additional flexibility if the market had run higher after that 3rd test of support, I could have added more positions later to readjust my average price again.
The logic to place the other targets just below support was based on considerations mentioned above.
I could have held 1 contract in case the market ran lower, but all things considered that was not anticipated and I'll take the profit.
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