7-26-10

The market has a fairly positive bias today reflected by breadth and moving averages. I am looking for trades to the long side with defined targets.

First trade of the day, 12 noon.

Entry: /YM long entry at 10439 on a nice reversal bar.

Target: R1, R2 midpoint at 10468

Stop: 10418

Target hit, trade closed:

Exit: 10468
Result: Gain 29 ticks or $145
Overall results: up 12 ticks or $60

Daily analysis:

Yea baby! This is what I am talking about. I got to the trade desk at about 7:45 this morning, and proceeded to watch the market all day, waiting for a legitimate entry signal. I was content with not taking a trade today if an entry did not present itself (a perfect mindset). Around 11:45 I was thinking about shutting down the software and looking elsewhere for entertainment, when, all of a sudden I saw a nice reversal bar developing to the long side, which I had determined was the only side to be on today. The bar closed strong and the signal was in. I took it with little hesitation and it worked like clockwork. The tricky part of this trade was having it push through the R1 pivot level. This level had been tough resistance all day, so there were no guarantees (like there ever are?) that price would push through with any level of confidence. It turns out that the shorts got squeezed and price powered through R1 nicely.

Not only was my entry near perfect, but so was my exit, using the old Jonny Carter* inspired pivot-midpoint exit to perfection. (*Master the Trade, John Carter's book)

This was a confidence inspiring day. Rock solid trade. Tons of patience. Only one trade on the day- which is awesome. And a healthy profit easily eclipsing my largest losing trade by 45%. Bam!