Wednesday, 10 November 2010

A Good Catch by One of my Guys

It's been quiet on the stock indices the last few days. I finally traded the Gap trade today. I got on half an hour or so before RTH and closed it a couple of ticks above before RTH opened. I made 1.75 very easy points per contract. This is a trade that most people should learn. It's not just shooting and hoping. There needs to be a concept or vision behind the trade and something to lean on, unless it is really close like today when gravity just works. 

They are getting all excited about jobs in the U.S. 'One swallow doesn't make a summer' comes to mind. I hope I am wrong, but I don't think that all the pain is behind us. The currency wars are going to continue fueling the volatility in both currencies and other markets. There's a video going viral of an interview on CNBC of Mark Fisher of oil trading fame. It's worth watching here. 

RTH opened. Looked like the market drank some bad water after it bounced off yesterday's VAL. I sold 1212.00s in the hope that it would run down the zipper. It did and I scaled out as it went down using my one and only Fib points as targets. I ran out of bullets by the end of the zipper and was looking to reload. It wasn't easy watching the train continue on it's dive without me, but I had to eat my own dogfood and wait for the entry. I was going for the gap fill to the high of 3 November RTH @ 1198.00ish.

I reloaded 25% as the price retraced to the closest Fib point at 1204.50 and started scaling, while having more to sell further up. I snatched a point when the inside the bar stuff told me to. I also sold the next fib break and had the same result. Good afternoon after a good morning trading the Euro.

As I was trading away and writing this blog on the fly, the email below came in. Glad that there are others in the tribe that monitor emails, because it was really cool: a new student catches a great move, the same one I'm trading.
Yesterday was bad, I over traded and ended up down on the day.

This morning I was looking for only good clean pictures. I took the Nat (ES) after the RTH open and was even a bit late getting in at 1210.50. I didn't get much heat at all and it went down nicely. I scaled 1 at 1208 and took the other one at the pause at 1206! Yay! Oh, and I worked the context today as well because it opened on the zipper from yesterday, which was beautiful!

A key thing for me was that I looked at a recent post of yours on the the blog and I noticed that you only worked about 3 trades and that was a stark contrast to what I did yesterday. I think I can be CP on just 1 to 3 trades per day and work up the size.

I'm on disc 6 now in the series and I'm still working on my plan, but I think I already have the tools in place. I just have to keep practicing on sim until I'm CP and then transition.

Man if I had had more bullets I would have stayed in the trade today as it looks like it will go to the 1197 area! I'm sure you're riding it now and it must be a huge day for you! Yay, go (EL)!


This guy looks like he has got it. Way to go, mate! You are really on your way.


  1. If the Fed had just a few traders on the board, the financial world would be much better off today and tomorrow.


  2. greetings
    question for you EL. ES rth open was looking for a gap trade. had a vwap extreme and buying came in, cool, but had a VAL at 120675 and order flow appearing to confirm short. cci's were in position to support short too, took that.
    question is conflicting contexts and how to handle them. This time my read of VB and CCI's provided clarity. Since I'm just grasping the Vision stuff I was hoping you might have some insight on this matter. I could post charts on TL but that thread seems dead, such a shame, it would be nice to have a place to discuss this stuff with others.

  3. Anon, You have a fixed point: 1206.75. That's the pivot for your trade. Whether you go short leaning on it or buy a few points lower to get to it depends on your vision. Or you can do both, one after the other.