This is the first post on the blog. If you got an invitation to this blog, you are the only one allowed to read it. I limited blog viewing to the folks who actually got invited, and I invited only those 28 traders who were in our class this week. I hope this will be a good way to stay in touch with one another, to rub brain cells with one another, to create good ideas and perhaps help solve problems.
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Yesterday the Fed did their 50/50 cut. I was hoping for a good Gap & Trap today, but the criterion that there be "an absence of significant news" pretty well shot that one out of the water, right?
Anyone play any interesting shorts today?
Wednesday, September 19, 2007
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3 comments:
I shorted the e-mini today around 10:30 at 1526. The market had put in two good Daily extension bars which gave us a nice oversold reading. I then went to the 30 minute bars and waited for a signal. The 10;30 -30 minute bar gave a nice extension up and closed at the bottom 20 % of it's range. I went short at the open of the next bar (1536.25)I took 1/2 off after 10 handles and waited for the 30 minute trendline to be violated to cover the other half.(1529.5) That was the only high probability trade I saw today. My stop was at 1540.5
The trade of the day was shorting the Nasdaq at 2056 on a perfect trendline retracement. Connect the 8/16 low and the 8/29 low and the trendline came in at 2056. One tick under the high.It fell 17 handles from that point. I never saw the trade until it was over. Just as well I have not sold the high in 3 years so that record is still intact.
I played DR's rubber band trade this morning. Based on the scans, 5 stocks qualified - PPCO, BC, LFG, KG and PLCE, all long.
My bias was long early thinking there would be some follow through. The two that looked best to me were PPCO and BC. Due to a previous commitment, I was only able to run the numbers pre open for those two and took those trades at 9:31. PPCO got taken out quickly for a 0.25R loss (ignoring trading costs). BC was good for a 1.7 R win. Had I taken the other trades, entering each of them at 9:31a, they would have played out like this:
LFG, 3.75R; KG, -1 R; PLCE, 0.09R.
The total for the day would have been 4.29R . . . Not a bad day at all for 60 minutes work.
Great meeting everyone and I look forward to keeping in touch!
- Mark
Good stuff, Mark. I spent the day doing cleanup and plan to focus on DR's band trades tomorrow.
Ed, I appreciate your comments. I'm learning to play the e-minis and welcome every sort of insight.
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