Wednesday, October 20, 2010
Still Looking for Another 1.5 Points
Markets have made up almost all the ground they lost yesterday and are now consolidating a bit. It may look tempting to short the market here, but I recommend waiting. The ES still has 1.5 points to go before official gap fill at 1181. You may be able to get a few points if you managed to get a short entry above 1179. But don't defend that position as I fully expect a retest of Monday's highs and official gap fill above 1181. You can consider a short entry there, but be careful as we will likely make new highs, possibly to 1184. I continue to like shorting opportunities in the 1190s on the ES, but there will be short scalp opportunities on the way up as well. If we get a down-tick now to 1175-1176, I will be looking to be a buyer back up to the highs.
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Long ES 1175.25
ReplyDeleteHolding this position, target 1180-1181
ReplyDeleteSell at 1179 for 3.75 points, will look to buy back in the next down-tick
ReplyDeleteBuy ES again at 1177.50
ReplyDeleteI'm going to hold this as long as it doesn't go back below 1175. Have enough profits from the last trade to use as a free stop
ReplyDeleteStill Holding. Hard stop now at 1174.25
ReplyDeleteand there it is, stopped out at 1174.25
ReplyDeleteWe didn't quite get official gap fill to 1180 today. We'll probably see it tomorrow as well as new highs. If we don't see the new highs, expect that to happen next week. Expect the 1190s (ES) to be tested.
ReplyDelete