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Trading Day Prep Work
Dow mini trading results - 05/18/2009
The Dow opened pretty strong this Monday morning and pretty much stayed in an
uptrend all day. The volume and pace were a little slow but that has been the case
for weeks now. The daily chart just put in its second system signal for a long last
week and after today it is nearly to its target area above the recent swing high. If it
stalls out and makes a lower-high it may help take us back down to the daily
neckline test, which is currently just under 8,100. The NYSE A-D was in trend mode
all day so divergences could have been ignored and more trades taken, but I hit my
daily goal on the first two trades and stopped at that point.
The first trade was just after the open when the 25x had pulled back a little and the
entry chart gave a first signal below the 8,365 crunchy with enough room to play to it.
The pullback was deep enough to allow an entry that let me out below the crunchy
using my standard target level. Divergence was in place at that point and A-D was
still opening so I sat back and waited for a while then. The second trade was the first
signal after taking out the high from Friday, which happened to also be the tip of a W
pattern and it set up after passing through the 8,365 crunchy. I had to ride through the
test of the W tip from above but it didn't test back far enough to hit my stop and then
went on to find the target at the normal scalp level. I didn't use runners on either trade.
It is going to be a short week so I am glad to have reached my goal the first day. I
expect with the holiday coming that it will be light and slow. The heaviest news day of
the week is Thursday and I don't think I will be able to trade that day. It will be a good
week to work on stuff in the room if you need help with certain things. I am really
pleased that more and more of you are starting to borrow my trading pace and wait
for my setups to enter your trades while learning. It is for sure a slower pace but at
least you will learn the specific setups I look for and how to find them yourselves and
more often than not have winning trades while you learn. A good number of you are
doing this now and that is a good thing, but be sure that you are asking questions on
the setups too when you have them. I will continue to announce the setups I am
taking when I am there but it is not a good thing if you don't learn to make the reads
on your own because I wont always be there.
(Here is the prior Post).
Results: 2 Trades Date: 05/18/2009 Gross Points This Week: 112 YM
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* For rules refer to Scalping the E-mini's
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All Times EST
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Looking towards tomorrow
The Pivot Trend Bias is UP so I will be looking for long trades early on a gap down
and stall and I will be using the 89-sma and A-D for trend direction.
The Advancing Volume ratio came in at 93% today . That is an extreme reading if it
is accurate and does have some follow through usually. There are two places we
get readings that high and those are at the start of a strong move and at the end of a
move. Given the light volume overall I am not reading too much into it but I do expect
the daily system signal to stall based on this reading either after building the
divergence above or from a lower-high position below the 8,593 crunchy. Today was
an expansion and expansion leads to contraction so tomorrow stands a good
chance of contracting especially with the light news.
I will be away Wednesday and Thursday but will trade tomorrow and Friday. If I don't
update the site again before the weekend I want to wish you all a Happy Memorial
Day. Lets remember and honor our friends and family and all the brave Americans
who gave their lives for our freedom.
If you are using Sierra Charts and want the automated alerts you can find them in
the Yahoo Group. The ones in the file titles system-alert.zip are the ones I use.
Have a great week! See you in the trading room.
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Good luck! Be sure to contact me through the links on the About Me page if you have
any questions. See my complete prep work for tomorrow.
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