Today we had a Continuation gap open that printed Block bars on the Globex Highs on multiple Time Frames including the 135 minute, 4500 and 1500 tick charts. We also printed blocks on the pre open test of the globex highs which set price into a down trend moving into the open. Price continued its decline in a tight range maxing @ 3.25 before the 1st Ti. Price later declined further to test the 1519 area beginning at the 2nd Ti.
Recap Notes:
Trade Selection - Good Trading, Great initial Entries, OK Exits.
Sequence 1 was a momentum play off the pre-open background weakness that appeared with Block bars on the globex and pre open highs. The position moved in favor about 1.5 pt before reversing a bit. I exited the probe for a small profit and wound up getting more on just before the rally on a C(500 reentry NT) I could have done a better job of exiting when price broke to new lows but no regrets.
Sequence 1A-2 was a Reentry of the Mo Open Ice but with further confirmation adding a 15/500 cycle sync. This trade was manged perfectly exiting into the rallies and maxing out on a few of the final lots. Even though we traded in a tight 3.25pt range i managed to take healthy profits out with solid probes.
INTANGIBLE OBSERVATIONS:
Late day News & Unpredictability - Today we have 11:00 FOMC news which often send the market into a chop and slop till that time. Today was no diferent. The best way to trade this environment is to take small profit when given and be cautious using probes to determine direction potential exiting at ANY signs of rejection counter minding the premise. However it pays to trade away from HT Blocks.
Spotting the Campaign and reacting - Today we had good reason to be short on the open with many signs of weakness n the background. However The campaign was evident as we saw prices marked up through resistance and minimal volume growth on it way up.
Clear signs are:
- Signal are being ignored
- Price moves in a direction in a tight range
- Price is marked up past areas with little to No growth on the Vol Bars
When this is spotted we should immediately revers our position and give it a chance to at least the 1st but usually to the 2nd.