Morning Update: 1/11/2012

12:07 am…

As I write this update the ES_F has continued to retrace from highs set in RTH. If balance rejects price it price 1280 area price may bounce and high odds of  trend continuation if balance accepts price and price moves past HVN 1274 we can then see a retest of the 1263 area.  Most markets hit balance extremes and have formed minor degree balance at those extremes or retraced off of those highs into a balance area.

Today I had several trades…

CL_F was a top setup that I was stopped out for a loss of -.50. later CL_F did retrace and hit the earlier  designated target. However, after reviewing the trade notes I noticed the entry was a little early and moreover I did not wait for a balance area to form.  😦

ES_F was a setup called “10 bagger” the first attempt had mediocre results. 1/3 for a profit + 3 handles the balance stopped out for break even. However, on the second attempt, I caught a nice short as price retraced to the 84-83 area where I took profit. With this setup, I usually trade with size (20 contracts) to take advantage of the quick 3-10 point move.  However I typically only trade with 1-4 contracts.

Tomorrow’s news of concern… 14:00 Beige Book. I am looking for tomorrow’s market to be similar to today. Markets still seem thin and frothy I Will wait for good trade locations within mature structures to trade.  Stick to risk parameters.  Stick to the plan!


Trade Well,

Olof Thomas


PS. As I work on the blog more and more information will be added as I continue to share  my experience as a professional trader. I hope this insight provides some context and guidance in your own experiences as we all travel down this life  path as traders.  Thanks for following!


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