So far the morning has produced a nice run up, but the internals are not as solid as they could be. I am going to cautiously observe this market and see if there is a good entry in the near future.
First trade of the day, 8:05am
Because the internals were showing some strange twitchiness I decided to fade this market with a short play. I have a target of a recent swing low and a stop of a few ticks under the recent high.
Update: 8:36am
Stop moved to 2 ticks above break even.
Update: 8:40am
Trade closed for a win.
Trade summary:
Entry: 991.75
Exit: 989
Entry type: Ledge breakdown
Exit type: Initial target hit
Net gain: $132.50
This trade was a great example of how internals can help let a trader know when to go with the market or against it. If I had only been looking at the chart of the future itself I would have thought it was time to buy a contract and ride it all day. The ticks, breadth, and A/D line showed a very different story, and let me know the market was in for a pull back. My target was within one point of the full move, so all in all, this was a good trade.
Update: After hours
I ended up too busy through out the day to stay current on the blog. I made one other trade, which was a loser. I wound up ahead $40 for the day.
Daily Analysis & Results.
I missed the only tradable move in the early part of the morning. On weeks like this, primarily composed of consolidation, I would have to trade early to have any chance of making some good trades. Sometimes it sucks to live in California. Waking up at 6am or earlier has never been much fun.
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