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Trading Day Prep Work
Dow mini trading results - 03/19/2010
The market gapped higher this morning and immediately began to fall from the open
forming an outside day. There were no news items today and it was expiration day
so we could have just done a slow churn like we have for a couple weeks now but
almost right away the market showed a slightly different personality as it made the
lower edge and broke it on the next bar with the best opening 30-minute volume in
two weeks. We didn't cover a lot of levels but it was nice to see some quickness
come back into the continuation type plays. We were still light in volume but In the
end if was the highest volume in sixteen days and the second best volume in
twenty-five days. I hope it keeps into next week a little. I ended up with five trades,
which is more than I have had during a day in a while.
The first trade was the first sell below the lower edge and crunchy at 10,666 and I
exited it as it formed a volume spike and divergence. That move created a trend
stance on the 25x chart. The next trade was the first sell off the 5-minute KC. The
pullback failed to make it back into its channel, which was a sign of the strength of
the sell side move so I was able to use a full target down to the next crunchy. I had
two trades soon after lunch and they were my only longs today. The room was really
quiet or empty after lunch so I was able to do some of the quicker scalp type trades
that I am not normally able to do when the room is more active. I exited both of them
manually as the divergences formed. The last trade was at the end of the day and
later than I will normally enter on a Friday afternoon but I was watching the first signal
set-up on the 10,666 crunchy and wasn't able to take it into the 15:30 reaction that is
often prevalent so when the impulse off that move set up the second signal directly
below the PE that had formed after lunch I really wanted to take it. I exited after the
divergence formed.
It has been a couple of really slow weeks on the Dow with a lot of small trades that I
have exited after divergences. It was nice to end this week with a market showing "a
little" more zip. I have been doing a lot more FOREX trading during the day due to the
slow activity on the Dow. Thanks again for your participation in the room. I am glad to
hear that so many of you have been using the filtering to slow everything down a little
while we have been slow. That shows great growth. Keep up the good work! I will
upload and paste the link to the webinar from last week on crunchies into the bulletin
or yahoo group sometimes this weekend.
(Here is the prior Post).
Results: 5 Trades Date: 03/19/2010 Gross Points This Week: 72 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. I will start the day in range mode and let it prove
otherwise. If we gap down then I will lean towards buys early since the PTB is down
unless we set up a good go with the gap play at the open.
The Declining Volume ratio came in at 75%, which usually has some
follow-through. I think the latest news is that they will try and pass that healthcare
bill over the weekend if they can and I wont try and guess what that will do to the
market. I will let the pace of things Monday morning direct me and I plan on starting
slow. We have seen several days of net selling into the upward grind that ended
today and it will be interesting to see which side comes in heavy next after that. I am
glad that I don't need to know what it is going to do before hand and can just go with
the flow.
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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