Hello Traders,
I was super busy this morning so no time for trading. However, I got back in plenty of time for the afternoon session where I banked 50 ticks ($650)! I posted the chart above and will comment on the trades later. In the meantime I want to give a big shout out to Big Mikes Trading Blog http://blog.bigmiketrading.com/ and the wonderful community of traders there! Especially Sharky, Wiz, Zeller, and Big Mike himself. These guys are the brains behind the indicators I use and if you want to learn to trade like them go visit the blog and sign up for the forums. I just talk trades!
First trade, Short 994.50:
I assumed a continuation on the downtrend would begin here. Especially because the top indicator got a nice divergence going. That wasn't the case but not a big deal. Contracts 1 and 2 were off for +4 and +6. The runner was stopped at break even.
Next trade, Long 996:
I could have gotten into this one a little earlier, maybe 995. but in the end I was happy with the entry. There was a big flush of buyers and the 993 area held up well, probably trapping some late shorts. Those who didn't switch their bias long missed a great move up to over 1000! I got contracts off at +4 +7 and +10.
Last trade, Long 998.75:
The top of the range here was 998.25 so if you were aggressive you could have gone long at 998.50. I waited til 998.75 because I didn't want to get trapped at the top of a range and have to wait through another pullback before we went higher. The order was triggered and I took profits at +4 +6 and +9. In the end I could have stuck with it, but the name of the game is accumulating profits and that's what I did today, going 3 for 3 for +50ticks.
Other news:
We are down in after-hours and some traders are thinking we have hit a short term top. I really don't think so. In my opinion, this market will go higher until something stops it.
Today's action in AIG might have been a good indicator of a short term top but who knows, really. Probably sell the news on Friday when they come out with earnings.
Tomorrow is the Initial Jobless Claims report. I expect that to set the tone for the day. If its in line with forecasts or above and the market goes lower that would be bearish in my book.
As always, thanks for reading the blog. Visit Big Mikes, Traders International and other links please. See you tomorrow on twitter
-Nate
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