Emini Day Trading Diary

5 min Emini Nasdaq 100

Hi,

The market gapped down by around 12 points today and its immediately reaction was to close the gap... I waited for the gap to close and that was when things started to get interesting.. The market being in a clear downtrend now did not have enough momentum to go up further... Price rebounded from my moving averages and Stochastics started to turn down.. I shorted 1 contract at 2020...

Price plunged beyond the opening price and I mmediately knew that today's gonna be a down day.. There was a slight pullback at 11:30 and this was a perfect chance for me to short another 2 contracts... I held my position all the way till price hit the support at 1990 and I got out at 1992 with $1280 profits.

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

5 min Emini Nasdaq 100

Hi,

Today the market gapped up by around 2 points... The piece of news that everybody's waiting for is obviously Existing Home sales at 10:00... But even before 10 am.. price was showing signs that it might break down..

1st.
Price rebounded from the moving averages.

2nd
Stochastics turned down from the overbought region.

3rd
Short-term MACD cut the zeroline, confirming our trade...

The trade is simple,,, I shorted 1 contract at 2030 and another 2 more contracts at 2028 when Short-term MACD seemed like crossing the zeroline.. I held it all the way till stochastics started to show signs of turning up and exited at 2015.. profits of $820.

Fundamentals:
Sales of existing homes fell in June for a fourth consecutive month, further evidence that housing troubles are far from over. The National Association of Realtors reported Wednesday that sales of existing homes dropped by 3.8 percent in June to a seasonally adjusted annual rate of 5.75 million units.

Sales of existing homes fell in June for a fourth consecutive month, further evidence that housing troubles are far from over. The National Association of Realtors reported Wednesday that sales of existing homes dropped by 3.8 percent in June to a seasonally adjusted annual rate of 5.75 million units.

Posted by Michael Taylor at 5:38 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going lately? Market is finally showing some signs of weakness as corporate profits fail expectations...

Today's trade is simple and straight forward...

Market gapped down and tried to cover the gap... I did not play the gap closure.. I was waiting for the opposite to happen... and it did.. .
gap closed but did not go much further beyond that... and at 13:00, price weakness started to show and stochastics started to turn down...

I shorted 1 contract at 2050 and another 2 contracts at 2040.. Notice how Short-term MACD also crossed the zero-line? This is positive affirmation... I held my position all the way till the end when there is some buying pressure and stochastics started to turn up.. I exited at 2018 with profits of $1520.

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

5 min Emini Nasdaq 100

Hi there,

We haven't have such good chance for a long time... market has been sluggish and range-bound.. day traders need some volatility to make money.. I made 2 trades today..one long and one short.. you will see that both are perfectly valid trades..

Trade 1
Market opened lower today with disappointing earnings from caterpilla and google... But I wasnt prepared to short the market as the stochastic was already in the oversold region. I waited till 11:00 am when price pulled back to the red moving average and started to bounce off... This was accompanied by a down turn in stochastics and I shorted 1 contract at 2055 and another 2 contracts at 2052 when there was a slight pause in price action. .. I held my position all the way until stochastics tried to turn up again.... and I exited at 2043 with $600 profits

Trade 2
From 12:00 till 13:00, there wasn't much chance and I couldn't tell where the market was going... but one thing evident is that a positive divergence is forming with my Short-term MACD...furthermore, a double bottom seemed to be forming.. and I decided to long 1 contract at 2045 when %K crossed %D in the shochastics accompanied by strong price action upwards.. I longed another 2 more contracts at 2047 and held my position all the way till shochatics and Short-term MACD tried to turn down for profits of $700.

Posted by Michael Taylor at 5:28 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi, Subprime could hit $100B....sound's scary? yeah....But Bernanke's effect on the markets is muted at best..although market gapped up today... it is still ranging... the day ended with a 10point range... Toward's the close price made a final attempt to close the gap.. This is definitely not a market to trade in...

Posted by Michael Taylor at 5:08 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq Emini

Hi,

how is it going? the market has been choppy lately... but strength is still there and it is evident that the market is still holding up.. Price gapped down by almost 10 points this morning...

Price action thereafter is choppy...It's easy to get killed if you entered during this period.. I patiently waited for a chance...

The chance came at around 15:30 when price broke above the resistance line ( see green dotted line) I longed 1 contract at 2048 and when it break past today's open price, I longed another 2 contracts at 2052... I held it all the way till the end.. and exited at 2060... The gap did close and I made $560 profits.

Posted by Michael Taylor at 5:49 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Chart Emini Nasdaq 100

Hi,

Nasdaq is hitting on a all time high again... If you really have to make a choice. Go Long. DON'T SHORT in such a market.. Did I make a choice? Yes, I did not trade... Why? There were no compelling signals for me to enter the market...

If you look at the chart above, you might be tempted to enter in the orange zone with stochastics turning up... but take a closer look... Short-term MACD is staying close to the zero line.. This is a NO NO is going long.. this screens out the possiblity of entering at all..

In fact the whole day is kept within a tight range of around 15 points... Stay on the sidelines..

Posted by Michael Taylor at 6:47 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Remember what I said about the markets? They are designed to move in the least expected way.. While Technically, it seems poised for a major correction... We are seeing new highs today..

It's alright, traders just go with the flow.. I longed 1 contract at 2036 when price broke above the high of the previous session with strong rebound of stochastics and 2 contracts at 2029 .. I held it all the way till the close and exited at 2036.. profits of $500.

Note: my stop loss was at 2020.

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

Emini Nasdaq 100

Hi,

How's it going lately? We are in an uncertain stage right now... For long term investors, it's better to stay out of the market completely. For traders like us, be extra cautious and try not to have pre-conceived notions about the direction of the market. Although the technicals suggests that market might be topping out soon.. Markets are designed to surprise the least expected... Be prepared..

The whole morning was characterised by ranging movements and I held my horses... simply waiting for a chance to enter...

My chance came late in the trading day at around 15:00... Stochastics started to turn up and price momentum looked good... Also it is characteristic of price to make a rebound at this timing... I longed 1 contract at 1995 .. My stop loss was at 1992, quite tight..

Price went my way and pierced through all the moving averages and on the way up, I added another 2 contracts at 2000 and exited finally at 2008 with profits of $580..

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

Emini Nasdaq 100

Emini S&P 500

Mini Dow

Emini Russell 2000

What does all the daily charts above have in common? Yes, all these futures market seem to signal that a top is coming... Nasdaq Emini is the most bullish chart with the recent run up... The remaining 3 charts appeared as though a double top is forming...

Plus, there is already negative divergence forming with the MACD.. This is especially evident in Dow mini... I urge all traders to be extremely cautious in this period as we see how the market unfolds... The odds are in favor of a steep correction, but I am not ruling out that the market might break new highs again... Markets are designed to confused and confound... Keep an open mind and let's see what happens next.

Posted by Michael Taylor at 5:34 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Nasdaq broke new highs again today.. but did you observe how price moved? It was not a clear cut upward momentum and I am beginning to get worried about how things will turn out...

Today's trade is simple... price simply hit resistance at 2012 and this was accompanied by a downturn in stochastics and short term MACD... I shorted 1 contract at 2011 and another 2 contracts at 2009...

I exited only at 2003 when stochastic started to turn up and there was a white candle appearing.. profits of $400.

Posted by Michael Taylor at 5:45 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going lately? I know, it's been a difficult market to trade... but be patient.. chances will always come back.. don't trade recklessly during this trying period...

Today's trade is simple and a classic... Price opened down and plunged immediately to my moving averages... The general trend is still up and naturally I expect price to bounce up again...

When stochastic turned up from the oversold region and Short-term MACD showed signs of turning up... I longed 1 contract at 1996 .. I went long another 2 contracts at 2000 after a slight pullback...

I exited at 2004.5 when stochastics started to turn down and price seems to lose momemtum... profits = $330

Posted by Michael Taylor at 5:35 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Daily Chart NQ

Daily Chart ES

Daily Chart Dow

Market is not really moving much... I am troubled by the health of the trend.. although Nasdaq futures broke new highs today, the dow and S&P did not follow ( Look at daily charts above)

I have highlighted a plausible trade on the NQ today... again.. I did not take this trade.. why? because although stochastics is moving up from oversold region Short-term MACD is too near the zero line...

Furthermore, the price action is clearly different from normal days, characterized by short ranging candlesticks.

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

5 min Emini Nasdaq 100

Daily Emini Nasdaq 100

Hi,

After the doji daily candle that appeared last friday, market rallied weakly today.. price surged up from the opening... but I didn't enter simply because there wasn't a signal to do so.. If you observe carefully, stochastics is already in the overbought region..

In order to capture this short morning spurt, you have to enter from last friday, when stochastics frist crossed over from oversold region.. ( green circle ).

The rest of the day was characterised by short ranging candles.. If you looked at S&P Emini, Volume is below 20,000 on a 5 min chart. The market is at a turning point.. and players are confused...

One last point to take note is the negative divergence between price and MACD in the daily charts.. The uptrend is getting sick... I will not be surprised to see a correction at some point.

Posted by Michael Taylor at 5:08 PM | Permalink | Comments (0) | TrackBacks (0)