Emini Day Trading Diary

5 min Emini Nasdaq 100

GDP numbers were out at 8:30 am. and they seem to be bad... But this did not deter the market from gapping up at the opening bell... Price action was hugely unpredictable with price zig-zagging up and down....

I had to wait till 13:00 pm for a chance to enter... It is quite obvious that 1935 is a resistance line the price is trying to cross as it whenever it hit 1935, it just gets bounced back... I shorted 1 contract at 1932 when stochastics plunged down from it's overbought region... The risk/reward is good as my stop loss is just above the resistance line at 1936. I shorted all the way till 1925 when a white candle appeared adn i got out with $340 profits.

notice the region highlighted in orange seems like a possible trade? In reality, it is quite a difficult trade as Short-term MACD is too close to the zero line and I didn't have enough conviction to put money behind it...

Fundamentals
First quarter real GDP growth was revised lower to just a 0.6% annual rate of increase. This won't have any market impact as the first quarter is long over, but it should serve as a reminder that the economy is far from hitting on all cylinders. Growth will pick up in the second and third quarter, but probably won't reach the long-term trend of 3% this year. Initial claims for unemployment for the week ended May 26 were down 4,000 to 310,000. That is still a low level, reflecting a good labor market.

Posted by Michael Taylor at 5:52 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

how's it going? China increased stamp duties on securities and that set the chinese market down by almost 7% today.. well, the effect is being felt through the gap down today... however, we at the US market have something else installed... --> The FOMC minutes..

Price closed up the gap by the morning session, I did not participate in this as I was waiting for the FOMC minutes to come out...

Notice that from 13:30 onwards till 14:00 there was a slight downwards movement with price moving downwards in anticipation of the FOMC minutes? I ignored this as well...

When the minutes came out at 14:00 pm, price action was volatile and I simply couldn't tell which direction market was heading.. for a moment price plunged downwards and I was tempted to go short... But my indicators prevented me from doing so...

At 14:05, a hammer candlestick formed with price bouncing off the moving averages and stochastics also moving up... I instinctly knew this was a chance to go long. I longed 1 contract at 1902.5 and another 2 contracts at 1908 when there was a slight pause in price action...

I exited at 1913 with the appearance of a doji candlestick and stochastic appeared to be peaking.. Notice that this is a bit too early for an exit and I did not manage to capture all of the upward trend. Nevertheless, I ended the day with profits of $410.

Fundamentals:
the Federal Reserve released the minutes of the Federal Open Market Committee's May meeting, showing that the risk that inflation would fail to moderate as desired remained the FOMC's predominant concern.

The minutes showed that all the committee members favored leaving interest rates unchanged, as recent developments were seen as supporting the view that keeping the target for the federal funds rate at 5.25 percent was likely to foster moderate economic growth and a gradual ebbing in core inflation.

While the committee members continued to believe that the risks to economic activity are weighted to the downside, the minutes showed that the members determined that the downside risks have diminished slightly.

Nonetheless, the minutes showed that the members remained concerned that the housing market correction could have a more pronounced impact on consumer spending than currently expected, especially if house prices were to decline significantly.

As mentioned above, however, the committee members continued to believe that inflation remains the primarily policy concern, with nearly all of the members agreeing that core inflation remains uncomfortably high and needs further moderation.

The members all agreed that the risks to the anticipated moderation in inflation were to the upside. Some noted that there could be significant costs if inflation fails to moderate, particularly if it led to an upward drift in inflation expectations.

Still, while the members agreed that the accompanying statement should continue to say that inflation remains the predominant policy concern, they agreed that the statement should also say that future policy adjustments would depend on the evolution of the outlook for both inflation and economic growth.

The members of the Federal Open Market Committee have voted to leave interest rates unchanged since June of 2006, when rates were raised for the 17th consecutive time to the current level of 5.25 percent.

The FOMC is scheduled to make its next decision on interest rates after a two meeting ending June 28. Most analysts expect the committee members to vote to leave rates unchanged once again.

Posted by Michael Taylor at 5:06 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's your holiday yesterday? Today's the first trading day of the week.. and There is big news to be announced --> Consumer Confidence.
It came in better than expected and if you are a fundamentalist, you would have gone lone at 10:00 after the report is announced.

But if you noticed, price movements is highly volatile from 10:00 till 11:00 am and at 11:30 am it started to go down.. I simply couldn't tell where the market is going... So I did what I did best ---> BE PATIENT AND WAIT.

Chance came at around 13:30 when Stochastics moved from the oversold region upwards... Although I don't really like the symmetry of stochastics and Short-term MACD, my stop loss was tight, at 1890.. so I figured that risk/reward is good enough for me to take some risk..

I entered 1 contract at 1892.5 and another 2 contracts at 1897 .... after that, although it was not all smooth sailing, price went as expected.. it inche up slowly... I exited at the close at 1906 when a red candle appeared... with profits of $630.

Fundamentals
NEW YORK (Reuters) - U.S. consumer confidence rose more sharply than expected in May as a more upbeat business outlook and a surging stock market overshadowed the impact of record gasoline prices, a survey showed on Tuesday.

The Conference Board said its index of consumer sentiment climbed to 108.0 in May versus April's upwardly adjusted 106.3.

The median forecast of economists polled by Reuters was for 105.0, seen rebounding from an originally reported 104 in April, which was the lowest reading since August.

"All in all, confidence levels continue to suggest growth, albeit at a slow pace," Lynn Franco, the Conference Board's director of research said in a statement.

However, record gasoline prices have fanned consumers' inflation worries, pushing the report's inflation gauge to its highest level in a year.

"The short-term outlook remains cautious, and rising gasoline prices are having a negative impact on consumers' inflation expectations," Franco said.

U.S. stocks added to earlier gains after the confidence data suggested that consumer spending, which accounts for two-thirds of the economy, would hold steady despite rising fuel costs and a weak housing market.

Bond prices fell as prospects of moderate growth would leave little room for the Federal Reserve to trim interest rates with inflation expectations on the rise.

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Yesterday new home sales numbers jumped 16.2% today, existing home sales numbers plunged by 2.6%. The former news is good and the latter news is bad.. Which to believe? Neither..

If you remembered, yesterday saw a 1% decline in most indices despite the good news.. And today, the market just kept on ranging and consolidating... the bad news is suppose to cause a further breakdown... But, did that happen? NO! In fact there was a slight uptrend bias in the overall trend today..

Notice how the Short-term MACD stayed close to the zero line and that price action is dirty... As I was watching the market depth and how the prices jumped, I realized that market was extremely volatile.. it's easy to get killed in such a market. you can be whipsawed out of your position ten times over..

Best decision --> Stay OUT!

Fundamentals:
Sales of existing homes fell a larger-than-expected 2.6% in April from March while the median price of a home sold fell for a ninth straight month.
Troubles in the subprime mortgage market acted as a further drag on housing.

The National Association of Realtors reported Friday that sales of existing homes fell last month to a seasonally adjusted annual rate of 5.99 million units. That was down 10.7% from a year ago and the slowest sales pace since June 2003.

The median price of a home fell to $220,900, an 0.8% fall from a year ago. It marked the ninth straight decline in the median price.

Posted by Michael Taylor at 5:24 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Good fundamental news came out today.. Durable goods data were up and new home sales jumped by 16.2% in April.. When new home sales data were released at 10:00 am. there was a knee-jerk reaction to the news and price shot up..I missed the trade, for a moment, I really thought that the uptrend was almighty and never failing.. we are going to have another all time high again.. But WAIT!

Prices hit my red moving average and started to fall... Shocastic was telling me the same thing too.. I don't care whether the fundamentals are good or if there are good news or not. My TRADER INSTINCT tells me to SHORT! NOT LONG. If market really took those data seriously, price action would be much more swift and we would have broken the moving averages instantly. I went short 1 contract at 1912.. and another 2 contracts at 1905.. At 1905, I was convinced that the market is not going up ( if not going down).

Smooth sailing after that.. all the way till 1888 when a white hammer candlestick appeared and I decided that I've earned enough --> $1160 profits.

Market kept on going down after that, but I missed it.. but it's ok.. I played by my signals and won. That's what counts to me.

Fundamentals
April durable goods new orders were up 0.6%. That was close to the expected 0.9% gain for this volatile number. March was revised upwards to a 5.0% gain. The component breakdown was encouraging as most key categories showed decent growth over the past two months. Business investment may be picking up after a soft period for six months.

New claims for unemployment for the week ended May 19 stayed at a low level of 311,000. Labor market conditions remain tight.

Home Sales Numbers
The Commerce Department reported Thursday that sales of new single-family homes jumped by 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units.

That was the biggest one-month sales gain since a 16.4 percent surge in April 1993. Even with the increase, however, sales are 10.6 percent below the level of a year ago.

The median price of a new home -- the midway point between the costliest and cheapest -- fell to $229,100, a record 11.1 percent below the March level. The price was 10.9 percent below the level of a year ago, the biggest year-over-year price decline since 1970.

Posted by Michael Taylor at 5:41 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

I didn't have alot of shorting trades these days because the mareket keeps going up.. But remember, what goes up must come down. Market has to correct at some point. I am still patiently waiting for the major correction that is bound to happen... The short that I did today is just but a minor correction in a major uptrend.. But when the big one comes, be sure to short it heavily!

Today's trade is pretty straight forward, the morning session till 14:00 pm is pretty range bound with prices between 1925 and 1930... At 14:00, price started to move down, However, I had to be extra cautious make sure that the price will not bounce back like before.. I shorted a little late at 1926 when Short-term MACD cut the zero line.. I shorted another 2 contracts at 1922.5 when price pulled back to the blue moving average..

After that, it was smooth sailing... I was a little worried when price hit my red moving average but there was enough momentum to carried it through and it went pass the red moving average by a fair margin.. I exited at 1913 when price pulled back a little with profits of $640.

Posted by Michael Taylor at 12:53 AM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

First of all, I want to state that today is not a very good day for trading. Price movements were slow and simply zig-zagged all the way... I won't blame you for staying on the sidelines...

Second, this trade that I made is not really a good execution as I missed the second leg of the trade.... The major reason for entering is that the risk/reward is tremendously in my favor as I placed my stop loss just beneath the moving averages..

If you observed the price movements, you will notice that until 12:00pm. you simply couldn't tell which direction the market's moving... Short-term MACD's hovering around the zero line and this is a typical KILLER MARKET. You would be slaughtered if you entered here..

I had to wait all the way till 12:00 for Stochastic to move up from the oversold region and price to bounce up from the moving averages.. As I mentioned before, risk/reward is good. Even if I lose, I won't lose big... I longed 1 contract at 1915 and another 2 contracts at 1919 and held it all the way till 1923.5 when a red candle appeared and stochastic appeared to be cutting downwards... profits of $350.

Posted by Michael Taylor at 5:48 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Today Dow's not really moivng up while Nasdaq 100 was strong... I missed the first leg as there were no signals for me to enter.. However, at the second pullback to moving averages, I took my chance and entered.. To be frank.. I wasn't 100% sure of this trade because my indicators were not really giving signals... Stochastics was already at the overbought region and showed no signs of turning down..

However, I have learnt to that it is necessary sometimes to break my rules and follow market action... The price action is simply too strong to be ignored... It resembled those of price action in a strong trending market...

I entered 1 contract at 1907.5 and another 2 contracts at 1912 when it broke new high... My hunch was correct and price just zoomed ahead.. I exited at 1920 when red candles appeared. .. Profits of $570..

Posted by Michael Taylor at 5:27 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going lately? Market gapped up today and there were some erractic movements that don't comply to my signals.. prices were moving down when stochastic was moving up and vice versa...

Seriously, I can't really tell where the market is going in such a scenario.. What's the best thing to do? Stay on the sidelines.. better not to earn anything than lose money..

I had to wait all the way till 12:00 until price showed some rebound from the moving averages.. and stochastic started to move up.. I longed 1 contract at 1897 and another 2 contracts at 1898.5... Short-term MACD also moved up and Mid-term MACD crossed the signal line too.. I hold my trade all the way till 1904 where I exited after some weakness in price action and a red candlestick appeared.. --> $400 profits.

Posted by Michael Taylor at 5:48 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Two trades are involved today.. FIrst at the opening bell, price gapped down by about 4 points and stochastics started to turn down, I immediately shorted 1 contract... However, by 9:30 there signs that price was turning up again and I exited immediately.. I lost $10 on this trade.. But I had to enter because my signals said so... Note that this trade is just highlighted in the figure above, the entries and exits are not shown...

The second trade is what we should concentrate on....

The whole afternoon was quite, I certainly hope you stayed on the sidelines... with Short-term MACD hovering near the zero line, you will get yourself killed by going in recklessly... Exercise the greatest trader virtue --> PATIENCE!

I had to wait all the way till 15:00 for a decent signal... Short-term MACD finally went up decently above zero-line, price hit the top band on Bollinger Bands and Stochastics started to downturn... PERFECT!.. This chance is worth our wait..

I shorted 1 contract at 1898 and another 2 contracts at 1896 when Short-term MACD crossed it's signal line.... after that, price just went down... I was tempted to get out when a white candle appeared when price hit the moving averages.. but my trade was still in the profit and I decided to hold my horses and stayed in the trade... price action looked weak anyway... I exited at 1890 with $400 profits...

Nett profits --> $390

Posted by Michael Taylor at 6:17 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Daiy Candlesticks

Hi,

Today, I will teach you how to uitilize the daily charts as well.. If you look at the daily chart above, you will notice that price pulled down to the mid-line of the envelope as there was a huge pullback yesterday... There is still a long term uptrend.. so logically, we should expect a rebound.. but, caveat here --> don't just assume that this is going to happen.. look for confirmation signals first.

Price pulled back and plunged downwards from 10:00 am onwards, I did not enter the market as I believed in the hopothesis stated above... then come, 11:10 am, and stochastics started to turn up plus price action accelerated with a huge white candlestick... I entered 1 contract at 1878 and another 2 contracts at 1882.5 when price paused as it meets the moving averages...

There was a point in the trade when price pullbacked all the way to 1880 and I was tempted to get out... but basically I maintained my original hypothesis that there's goining to be a rebound and we haven't seen much of a rebound yet, my bottom line was just slightly in the red.. not a big hole,,, and I decided to hold my position...

Well, I was right and price went up all the way to hit my red moving average and I knew it was time to get out... I got out at 1892. with $660 profits.

From Briefing.com
April housing data brought mixed signals. Starts on new homes rose 2.5% to a 1.528 million annual rate. That was above expectations. But permits for new construction dropped 8.9% to a ten-year low at a 1.429 million annual rate. Homebuilder confidence has fallen recently and starts are likely to dip in upcoming months. The sector remains mired in a deep slump.

Posted by Michael Taylor at 3:22 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,
Core CPI data was released at 8:30 am this morning.. and April was up 0.2%. So is that good? Well, don't ask me, I'm a trader not an economist... According to Briefing.com it's good.. So we go long?

Hardly... Today I made 2 trades... the first trade was short, then followed by a long... normally I don't reverse my trades immediately after exiting.. but today just happens to be such a day ... You will see that my indicators provided the signals... and both entries are perfectly valid...

Trade 1
Stochastics downturned, plus price moved down from moving averages, basically, the moving averages served as resistance above which I placed my stop loss... good risk/reward return...
I shorted 1 contract at 1898 almost at the open and another 2 contracts at 1895 as price plummeted and Short-term MACD cut its signal line... I finally exited at 1889 when stochastic appeared to be turning up.. profits of $300.

Trade 2
I exited at almost the low,, and I was observing the price action... there's a hammer and stochastic appeared to turn up... but I wasn't sure... but then...price action really accelerated in the 1 min chart and I entered 1 contract at 1891... and another 2 contracts at 1894.5 when price paused for a while... after that.. it was simply a matter of keeping my cool and waiting for profits... price surged pass the moving averages cutting through all of them with a huge white candlestick... I finally exited at 1905 when red candles started to appear... $700 profits...

I just happened to caught the Highs and the Lows today... :P total profits = $1000.

From Briefing.com
The April core CPI was up 0.2%. That was in line with economist forecasts but there were hopes of a 0.1% increase. It was up just 0.1% in March, and the April core PPI was 0.0% as reported Friday. A 0.1% increase probably would have given the stock market a solid boost and renewed talk of a potential Fed rate cut just months down the road. It provided the best opportunity on the list of scheduled events to re-invigorate the recent bullish sentiment.

The 0.2% core gain is certainly not bad, and the year-over-year increase now sits at just 2.3%. The trend is steady and the overall rate is not terribly worrisome. It won't alleviate concerns at the Fed, however. They continue to emphasize that inflation is the predominant concern and recently rising energy prices and continued tight labor markets raise the risk that inflation pressures pick up. Today's data won't increase the Fed's inflation concerns, but they won't alleviate them either.

Posted by Michael Taylor at 11:51 AM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

1st Trade --> $450
I made 2 trades today..one in the morning and one in the afternoon.. The first trade was simple... market simply did not have enough momentum to go up like it did the last friday and it fell since the open... Stochastics and Short-term MACD gave an entry signal and I shorted 1 contract at 1912 and another 2 contracts at 1909... I exited when price rebounded a little from the moving averages... profits of $450

2nd Trade --> $370
After the first trade, price action hovered around the moving averages and it's pretty obvious that you should keep out of it.. it's a killer market... and there is a strong support at 1900..

I had to wait till 13:00 pm to find a chance.. price broke the support of 1900 decisively. Short-term MACD crossed its signal line and Mid-term MACD appeared to be crossing the zero line as well. I shorted 1 contract at 1898.5 and another 2 contracts at 1895... I exited at $1890 when price exhibited a hammer candlestick and a white candle appeared... Profits of $370.. Total for the day = $820

Posted by Michael Taylor at 5:29 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

If you believe in the long term uptrend, today should be a good opportunity for long term investors to buy in. While day traders like us don't really have such long term views, it's useful to know the big picture.

Ok, enough said... so how did I fare for the day?
From 10:00 am till 11:00 am there was a surge in price, but I missed it... there weren't any signals for me to enter apart from the fact that yesterday was a downday and long term investors would treat today as a good chance to enter again.. If you have been reading my blog, you probably know that I trade solely on my indicators and adhere to a strict discipline.

After that, from 12:00 till 14:00, the market was basically ranging and we can tell that by the hovering movements of Short-term MACD around the zero line.. This is a killer market, I avoided it like plague.

From 14:40, however, the stochastics turned sharply upwards and price seemed to rebound from the moving averages... I entered 1 contract at 1900.5. The entry appealed to me as my stop loss was tight at 1898. I entered another 2 contracts at 1902... after that, it was just waiting for the trade to work out... Short-term MACD crossed its signal line as a confirmation.... At 1907 however, price action started to weaken and I exited at 1906 with profits of $270.

Notice that after my exit, price went up even further, stochastics instead of cutting down, went up again.. well, I did not managed to capture this... but that's fine... I play by my own rules...

From Briefing.com::
April core PPI was unchanged. This is good news and follows a similar unchanged reading in March. February was +0.4% and January +0.3%. The year-over-year increase dipped to just 1.5%. Total PPI was up a bit more than expected at +0.7%. Energy prices were up 3.4% and are up 10% over the past three months. Whether these pressures flow through to the core rate in the months ahead is a critical inflation issue.

April retail sales fell 0.2%. This is disappointing but not terribly surprising after the very poor same store sales numbers posted yesterday. Excluding autos, sales were flat. The consumer spending outlook is much in question now, particularly with rising gasoline prices and slowing employment and wage gains.

Finally, in what is continuing to be one of the most under-reported stories of the year, the US federal deficit continues to drop sharply. Yesterday afternoon, it was reported that the surplus for April was $177.1 billion. That was $58.3 billion above the April 2006 surplus and lowered the deficit for the past twelve months to just $145 billion. That is down from about $435 billion three years ago.

The deficit has now dropped to just 1.1% of GDP. That is well below the 3% or so level that most industrialized countries such as France, Germany, Italy, and Japan are running. It is down from the near 4% level of 2004. The decline in the budget deficit the past three years has been nothing short of extraordinary and has caught everyone (including ourselves) by surprise. It received almost no press mention yesterday.

This mix of economic news won't have much impact on the open. A bounce after yesterday's sharp sell-off is likely. Whether there is followthrough support today and early next week will tell much about whether underlying sentiment has become more cautious.

Posted by Michael Taylor at 5:48 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100 Candlesticks

Hi,

How's it going? Today's a classic trade and I am glad I executed it well.... this is sort of a no-brainer trade and I certainly hope you made money on this.Let me list all the technical factors that let me to short the market..

1 Price gapped down by around 5 points. Normally we would expect price to close the gap, but even by 11 am, there were no signs of closing the gap. --> market shows weakness..

2 Price broke moving averages

3 stochastic cut down from overbought region

4 Short-term MACD crossed zero line

5 Trade confirmation by Mid-term MACD

6 If you like, FED rates left at 5.25%. ( but this was not really a factor for me entering the trade) .... So rates unchanged is bad for market

All the ducks are lined up! So what do we do? Short! Shorted 1 contract at 1906 and another 2 contracts at 1898 when there was a pause in price action... after that,,, it's just riding the trend... my exit?
simple, white candles appeared and stochastics seemed to be turning up... exited at 1887.5 with $790 profits..

Simple trade, clear enough, you just have to act on it!

Fundamental news:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters.

Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.

In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Posted by Michael Taylor at 1:47 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

The market has been flat for the past few days.... It is completely understandable if you did not find a trade. I'd rather stay out than have to trade against the tide...

Today's trade is nothing fantastic... just a pure play of momentum and support... The prices were consolidating and finding support at the moving averages and you can see Stochastic moving up, plus short-term MACD cutting its signal line...

so we can really limit the downside risk... the I entered 1 contract at 1906 and my stop loss was at 1903.5... very tight.. I was not prepared to stomach as loss if it broke down the moving averages again.. to me, these moving averages served as the ultimate support lines in this trade... Price did surge up without any pullback or pause and that did not allow me a chance to enter the market a second time.... I exited at 1914 when a red candlestick appeared.... with profits of $160... Not bad for a flat market...

Posted by Michael Taylor at 5:19 PM | Permalink | Comments (0) | TrackBacks (0)

5 mins Emini Nasdaq 100

Hi,

Today, price gapped down by almost 6 points and in the first 30 minutes of trading, price continued it's downward plunge into the red... However, at 10:25, stochastics gave me a signal to go long, turning up from the oversold region. I longed 1 contract at 1893 and another 2 contracts at 1895... This is a huge surge upwards.. and I almost did not have the chance to enter the second time at 1895....

All went smooth.... until price met resistance at the moving averages... it was pretty obvious that significant amount of momentum was needed for price to cross the moving averages... A red candlestick appeared and Stochastics which was already in the over bought region also appeared to be turning downwards... I exited immediately at 1902 with $460 profits.

Posted by Michael Taylor at 5:51 PM | Permalink | Comments (0) | TrackBacks (0)

5 mins Emini Nasdaq100

Hi,

How's it going? I cannot stress enough that if the conditions are not right, you should just take your dog for a walk, go for a jog, enjoy a movie or what the heck, sleep....

Today is precisely just that kind of day and by experience, I knew the outcome of the day from the first 30 minutes of price action... Yes, a ranging day and definitely a killer if you go in and out of such a market...

Notice how the Short-term MACD is hovering near zero line? The not so symmetrical movements of stochastics? all these indicates ranging market conditions...

Are there potential entries? yes, look at the orange circles when price pulled back to the moving averages... But should you enter?

NO!!

Think like a trader, think risk / reward.. and the answer will be obvious...

Posted by Michael Taylor at 5:22 PM | Permalink | Comments (0) | TrackBacks (0)

5 mins Emini Nasdaq 100

Hi,

How's it going? Market has been strong lately, on a steady uptrend.. But the trade today is actually a short.. Why? because of the signals.. and purely because of the signals...

Market gapped up by around 5 points today, made an attempt to close the gap, but failed.. I had to wait till 10:30 for a clear signal that price doesn't have enough momentum to keep on going up... I shorted 1 contract at 1914 when stochastic downturned... This was further confirmed by Short-term MACD cutting its signal line... I shorted another 2 contracts at 1912 when there was a slight pullback in price... After my entries.. all is set for the price action to play out..

It closed the gap.. and went beyond that.. I sticked it out until it touched my longest moving average (red) I immediately exited at 1900 which was also a strong support line with $760 profits.

Posted by Michael Taylor at 5:48 PM | Permalink | Comments (0) | TrackBacks (0)

Posted by Michael Taylor at 5:29 PM | Permalink | Comments (0) | TrackBacks (0)