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Trading Day Recap & Prep Work
Dow mini trading results - 08/18/2010
The market opened flat and spent the whole day inside of Tuesday's bar with the
exception of a single tick below its low. It was a mostly slow day with the only areas
of quick movement coming in the first 30-minutes and the first part of lunch. This
general area we are in is not a lot of fun to play in unless the trades line up working
directly off the crunchies.
That is what my lone trade turned out to be today. It was the lower-edge formation
play (see Bulletin in trading room for examples) and it lined up directly off the 10,318
crunchy (see same Bulletin for a video on how to draw the crunchies). There had
been a few sells down into that area but I showed up a hair late and missed the first
one so opted to wait it out for the first off the test of the level. Since it was an inside
play the exit was handled manually after divergence had formed. Most of the inside
plays will be that way since the space is more limited than it is in an expansion. We
can still use runners on the inside plays but I would not do it without multiples of 3 or
4 where you exit 3/4 of the position at the normal scalp trading level and let the others
run to the crunchies 1-3 levels off.
Summer is winding down quick everywhere but in the markets. Hopefully with today's
decent consolidation day and tomorrow's news cycle we can get a relatively good
expansion to clear this area. I don't really care which way it goes so long as I don't
have to keep staring at 10,318. Please ask for help in the room when needed. You
don't have to figure it all out on your own. The system should be kept really simple
and success will usually come down to how you manage your pace, stops and
targets so ask for help with those things. If nothing else try to match my pace until
you develop your own.
(Here is the prior Post).
Results: 2 Trades Date: 08/18/2010 Gross Points This Week: 59YM
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