Wednesday 6 January 2010

Love at First Bite

It snowed overnight here in London. Not a lot by U.S. and European standards but it slowed London down to a crawl and I heard that many traders living outside of London had a hard time getting to work.

So there was no morning trade. We tried a couple but scratched them both as soon as we saw there was no instant gratification.

We did our morning prep and I looked at the RTH Profile of the ES and straight away saw that there was a large bite out of the top half - the bell curve was incomplete. Looking at the trend for the last few days via the longer EMA, it was up. So my thought as I spoke to Kiki early this morning was that the "bite" should get filled in before much else happened. Hence the two scratched trades that didn't take off. Then lethargy set in as the market waited for the ADP employment numbers due at 13:15 London time. As soon as they were out of the way there was a green candle at about 13:20 which was the only really low risk entry of my day. The rest of my day showed the bite filling in. We finished at 18:00 with the market having traded up to just above yesterday's high and filling in the bite. There was another entry just before we finished at the bottom of today's developing VAL.


Click to enlarge

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