Market finally gave up on trying to correct the short term overbought range and pressed higher. We crossed over into "trend" territory shortly after the Fed minutes, which we benign. Entering momentum trades right after the announcement were tricky, but one needs to take the trades as they are offered because one never knows. You cannot presume to know that the indicator is wrong this time. I have a greater than 50 tick range, so I am obligated to abide by my indicator when it triggers. I may be a bit more tighter on my exits, but I cannot ignore the entries. With that said, I jumped in 5 minutes before the announcement due to the whip action that we got that triggered my signal. Luckily, I was able to stay in for the good news reaction which gave me +30 ticks on the YM. About 7 minutes later I used discretion and price action to get me into a highly speculative ER2 play that garnered +20 ticks. So far so good. I gave up -20 YM ticks on my next momentum play and then rebounded for +56 YM ticks on one of my plays of the day. I then finished out the day around 12:03 with a +10 tick trade on the YM. I then sat back and watched the rest of the day. Matter of fact, I just didn't feel like trading any more in the day after that 12:00 trade (Cali time). market flattened out after that and meandered around the rest of the day. Suffice it to say that I scored the trend of the day and didn't miss out on anything.
Key stat of the day is the profit acquired together with the days range in the YM. Ranges over 100 are consistently profitable with my entry and exit system. Oh yeah, you can have a losing day even if the market is up 100 points. It's all dependent on triggers for entries and exits). Yesterday we chopped around with an "inside day" and gave up a few testing the waters. Today we blew the doors off by taking advantage of the trend day. Trading, esp momentum trading is just that - you chop around testing the waters giving up a few waiting for that trend day. You then jump on the trend with aggressive play to make back those losses and end up for the period.
Summary of the day is below:
YM: +86 ticks (equal to +$430 per one contract position)
ER2: +30 ticks (equal to +$300 per one contract position)
ZG: +85 ticks (equal to +$850 per one contract position)
Days Range: 150 ticks on YM
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment