I took two YM trades and one ER2 trade this morning for a net of +3 ticks and +30 ticks, respectively. The two minute chart was not showing any momentum pops at the outset due to the fluctuating nature of the market. My indicators look for a slowing period followed by a momentum burst. So, I turned my attention to the 5 min charts which did have a momentum pop to the upside before the market opened. Following my rules, I enter a long position, but entered with only 1/3rd position due to lack of 15 min YT and given that it was pre-regular session action. The Momentum indicator switched to neutral after about 1/2 hour, so I exited the 1/3rd position with -17 ticks (equal to -$85 per one contract position). After the open, I received another 5 minute momentum pop followed by a 15 minute momentum pop on the YM. Going long 1/3rd position for each, I was able to bag +20 ticks (equal to +$100 per one contract position). Net on the YM was +3 ticks. I also received a 5 min momentum pop long on the ER2,, which I rode for $300. Given the volatility of the past couple of sessions, I used a trailing stop on that play.
Upset of the day is the CD. I called out the need for a correction after a 3-Headed Monster appeared over the past couple of trading sessions. It was extremely bought, but I thought that a graceful entry would be offered - how wrong I was. Nice 1.46% pullback (151 ticks - equal to +$1,510 per one contract position), but alas I was not there. A missed opportunity? Yes. But I felt ok with that given I was following my rules. I now await a pullback to the 34 EMA for a short entry.
Morning summary is as follows:
YM: +3 ticks (equal to +$15 per one contract position)
ER2: +30 ticks (equal to +$300 per one contract position)
Regular Session Range: 104 ticks
24-Hour Session Range: 146 ticks
Morning HVP: 13,475
Monday, October 22, 2007
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