Morning Update: 1/31/2012

4:54 am…

The indices started off  mixed this week. They were very volatile and opened lower, but had a wonderful recovery. There were large gap downs at the opening, they smartly bounced, and then lower lows were presented. The indices rallied sharply to midday, consolidated, and rallied again in the afternoon before forming  a balance area again in the afternoon.

Today I had several trades 6C, GC, NQ…

6C was a short I took last week on a fade of a possible stopping point and was able to close the position today for a nice total profit of +72 pips

GC  was an initaive trade of a balance area lower extreme that corresponds with a HTF strucutre breakout on the weekly I’m currently positive in the position

NQ was an initiaive trade of a balance area lower extreme that corerepsonds with a HTF strucuture breakout on the weekly I’m currently positive in the position

News for today… Chicago PMI, CB Consumer Confidence.

Stepping back and reviewing the hourly chart patterns, the indices gapped down sharply, found some support and then bounced, consolidated mid morning, extended the gains in the afternoon, pulled back to test a minor support level, that was successful, and in the last half hour bounced once again into the close. We have some important economic news towards the end of this week specifically unemployment numbers on Friday and I suspect the market will be rotational in nature until that news is released.

The weakness I would like to work on this week is my focus on the “process” throughout the trading day. The profits will take care of them self!

The strength that I would like to reinforce is the creativity and focus I have brought to improving the trading system and its components.

 

Olof Thomas

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