Tuesday, October 5, 2010
S&P Trades up Toward Top of Range
We gapped up this morning and surged higher towards the top of the trading range after better than expected non-manufacturing data was released at 10:00am. We have been chopping around between 1145 and 1148, but it doesn't look like the market is ready to break down yet. 1150 is likely and 1153 would probably be the maximum price point for the day on the ES. I am looking for opportunities to short the market (probably between 1150 and 1153) and look for eventual gap fill down to the low 1130s. Current action is very bullish, so I am only considering the short above 1150. Need to see solid signs of resistance and indication of a reversal. I'll post in the comments here if I take a trade.
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Short at 1150.50
ReplyDeleteI took the short entry there because we were stalling between 1150 and 1151 for some time. We saw a small second surge of buying come in and push the ES to 1151.25, but sellers came in and prevented a further move. Still bullish though, so I will not defend this short. If we don't down-tick fairly soon, I may exit the trade and look for an entry closer to 1153
ReplyDeleteCovered at 1151. Will look to enter this short at a better price, i.e. 1153-1154
ReplyDeleteShort again at 1150.75
ReplyDeleteI am not worried about holding the short now. We will likely consolidate up here for the majority of the day. I will be looking to get in and out of this position for 1 or 2 points a pop. We will likely have to wait till the end of the trading session to see the next move.
ReplyDeleteAdded a position to my short at 1153.75
ReplyDeleteNow short two contracts for an average price of 1152.25. Market very bullish here. Have to be careful... Just looking to manage my position to avoid losing money on this trade. Will look to cover this position on the down-tick to 1152
ReplyDeleteStill holding my 2 contracts. I expect the ES to trade back down to 1148-1150. However, I don't want to take more heat than this. It is also possible that we trade to 1160-1165 before retracing back to 1150. I will exit this trade if we break above 1157. This is an example of poor trade management. I must be rusty after my break. It is probably best to paper trade after an absence, just to get your feel for the market back. I can't remember the last time I got into this much trouble... Lets see if I can save this trade or not...
ReplyDeleteCovered 1 contract at 1157
ReplyDeletePut contract back on short at 1157.75, stop at 1158.75
ReplyDeleteStill holding both contracts, I didn't have a hard stop in at 1158.75
ReplyDeleteCovered both contracts at 1157. Just can't get any momentum on the sell side...
ReplyDelete