Morning Update: 12/29/2011

Hello Traders:

11:33 pm…

Good evening… as I write this update the ES is retracing slightly from making highs of 1250 after an expected pullback to the 1243-1245 area. Will see if this can turn into something more or merely a “dead cat bounce”.  Essentially from 12/23 to now the Es has broken out of a minor degree balance area retraced to the upper extreme area and is now bouncing slightly.  Tomorrow’s  market can do anything, especially since another holiday weekend is coming up. This combined with the lack of liquidity will make successful trades difficult. Today was a perfect example as we took small loses on the YI and DX trade precisely due to a lack of conviction and follow through . Please enjoy the holiday and thank you again for following, please continue to check the blog and twitter for updates and trade alerts. If 1243 doesn’t hold as support on the ES next stop is 1232. If 1243 does hold look for a retest of 1264 area. Responsive trades at the extremes is the primarily game plan for now, as next week the additional volume will setup a more initiative scenario for trades.

Trade Well,

Olof Thomas

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