Morning Update: 1/4/2012

Hello Traders:

2:42 am…

As I right this update the ES has broken the balance formed during RTH and a gap fill is likely overnight into tomorrows trading session. We are currently holding 2 positions ES_F, YI_F and sold GC_F today for a profit of $32.  Will look to sell YI on a retest of the minor degree balance above. NQ_F, was a short we scratched immediately for a minor loss after noticing breadth just didn’t support the trade at the time. H0wever, I now see that shorting was indeed the right decision but the timing was off. Lastly, the ES position has a b/e stop of 1201 and will be leaving this one as a runner.  As many instruments have reached balance extremes the next several days will provide many opportunities to establish new swing positions as these areas offers the best r/r. I’ve also noticed that Tuesday has become the new Monday insofar as “cycle start day”.  Targets, stops, and setups are recorded in the journal. The data sheet reflects all instruments that are in balance areas. Many of the setups are charted and uploaded under my charts.

 

Trade Well,

Olof Thomas

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