Tuesday, November 02, 2010

Consolidating My Position

It was a night of careful considerations as after last Friday's session, I was definitely in no mood to lose more ground (in terms of my account - which I am still up by +US167). Even trading the pre-market session was a no-no.

However, just at the market open, a LONG trade set-up presented itself and I told myself to take it, knowing fully that important data would be released at 10pm (Singapore Time). Just less than a minute into the LONG trade (I entered at 1186.25) , the YM jumped and this aided my position. It was such a huge push that it burst through the YM's pre-market high. But the ES refused to follow suit. I was beginning to get a bit jittery as this "divergence" between the YM & ES can have disastrous results, especially with important data to be released very shortly.
Knowing fully well that for me, today was a "accumulating points" session, I decided to take my money off the table at 1189.00 (before 10pm). The data released proved to be a good set of numbers and both the YM & ES (eventually) pushed higher. Unfortunately, both stopped short of 25th Oct's high. For the ES, it fell short by 0.25pts, at 1192.75.
Unknown to me that at this point that the morning up move was done for the day, a SHORT set up was apparent and I took it, knowing that it was still a Counter-Trend trade. PRICE was still in an uptrend and the down move is allowable, for an Oscillation down challenge, to give us a Higher Low, before PRICE heads back up again.
Taking my 1pt gain swiftly, I was rather surprise that the Oscillation challenge was getting deeper. But it didn't really mattered as by then, I had stopped my trading for the night, so that I could catch Fringe on the telly at 11pm. Only when I opened my charts this morning, that I found out that the down move was "super deep". However, it still doesn't change things. It is allowable and we should see PRICE heading back up tonight, to challenge 1193.00 - unless it starts to fail, even before that. Let's see...

For the record, I had a total of +3.75pts gained last night and it brings my account back to +346.50 from my original starting balance.

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