Dec 012010

ES is currently at 95 which is almost 20 pts up from yday close.  The OTF was obviously present during the Globex session.  At the open I’ll be looking for signs of OTF presence.  Either OTF buying to continue the move up or OTF selling to take advantage of high prices.  If I see the OTF I only trade with them by entering on pullbacks.  If I don’t see them then we may rotate around the 95 CHVN.  In which case I’d look to trade the neighboring CLVNs (99.25 & 91.75).  We’re at the upper end of a multi-week balance area so the top provides excellent trade location for a short.  If it weren’t for this 20 pt gap I’d be looking for a swing trade.

I don’t particularly like these big gaps because I hesitate to get long, it’s extended 20 pts already, and I hesitate to get short because I know the OTF moved prices up.  So I will be cautious today.

Sorry for lack of more details but i don’t have much experience trading 20 pt gaps. I drew a few arrows for scenarios that may unfold.  This will be a learning experience for me.

Earlier this morning I posted my November Results & introduced my monkey.  And I posted a fix for the Ninjatrader worksheet of my trade log spreadsheet.  Been a busy day!

  One Response to “ES Trade Ideas Dec 1”

  1. Just a quick note to say that I like the way you visualize your ideas on the composite (blue arrows). Oh, and I don’t like those large gaps, too, and for the same reasons..”too high” to buy, “too strong” to fade… or is it !?


 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>