November 6 2009 Overlay, Trades, and Commentary

CLICK HERE FOR TODAY'S BREAKOUT LONG HD VIDEO

There was a textbook inside support zone this morning. When I did the prep, the price was actually below the zone. This is something I look for.

I like to see the zone get tested and penetrated prior to a move up. It gets difficult when it gets extended, back inside, then extended more.

This was happening often a couple weeks ago and made for a very tough sequence. I think the difficulty made me start to doubt some of my prime setups and led to some skipped trades over the past few weeks.

I am working on the mindset that I need to execute everything I see and just take the losses on the double washouts.

There was not much of a short entry at the highs other than just making a blind short bet. This is not a move I will make when there is an inside support zone that has been extended and held.

After the move off the highs. I anticipated a contraction and was looking for very premium setups only.

Weekly review:

I was down a little bit this week. This is mostly due to missing a couple key moves. I had losing trades in the right direction at the right areas but did not re-engage after I took the initial stop out.

I think this is going to prove to be a pivot week. I had some good trades that sis not work out and suffered from a bit of reluctance due to less than optimal personal performance over the past few weeks.

I am reading the market well and after this week, my execution confidence is higher than it has been in a long time.

There is clarity in what I am doing and I think the PNL will reflect that next week.

Also, I had a solid Friday which has been something that I have had at the top of my trading "to do" list for a long time.

November 6 2009 ES Prep Posted

Good morning. See comments.

Novermber 5 2009 Overlay, Trades, and Commentary

I mentioned the overnight extension probe of 1042.50 in the prep this morning. This is a strong indication of an upward premise.

I prepped for pullback and a move up to attempt to extend 1057.50. That is what we got.

However, I got into 3 shorts today and 1 long. The long worked and the shorts did not.

The first short was a bet on a deeper pullback with an outside kicker of a potential test of 1044.00-1042.00.

Once it became apparent that it was likely to be a shallow pullback I attempted to cover and had a technical breakdown with my order platform. Just plain bad timing in the midst of a tough sequence of trades this week.

I had to manually add the exits on the first two trades because I did not close through the Ninja platform.

I got out at 3 points worse price that what I wanted. It was an ok trade. While I was working on the problem, I got a clear long entry but there was not much I could do.

I have adjusted my breakout trading to much tighter management as evidenced by the other 2 short attempts.

You can see that they were at areas that would produce a large winner if they worked but because of their placement, were lower probability. This is part of my "what if" scenario building.

I am satisfied with my execution because I hit everything I wanted to with the exception of the technical issue.

I need to keep up the aggressive execution. I have found that if I take more entries, I may be prone to more stops, but I hit the moves when they occur and this will produce a significant edge as long as I exit properly.

I must remember to keep it simple. Simplicity works.

November 5 2009 ES Prep Posted

Good morning. See comments.

November 4 2009 Prep Overlay

Good read but price did not come back to inside support this morning. No commentary tonight. I will resume tomorrow.

November 4 2009 ES Prep Posted

Good morning. See comments.

November 3 2009 Overlay, Trades, and Commentary

I had a very good read on the market today and anticipated a contraction.

I had 2 good breakout trades for a break even today. This is actually a very acceptable outcome for this type of price action.

There was not much else to do and pressing today would have led to trouble.

I felt better about my execution than I have in weeks. I have made some minor adjustments to my trading plan which will help.

I am going to start asking myself "what if" more often and taking scenario trades that fit my premise. Even if there is no confirmation.

This will cause me to get into some whipsaw trades but I think I need to in order to properly execute my prep.