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.