January 25 2010 Overlay, Trades, and Commentary

Had a slow and contracted day after the move down last week. This is a common follow up to a significant move.

There is a way to play this type of congestion. I like to have an overnight high and low to work off of but there was not an optimal setup today.

I was down 1.75 points which is a very small loss for me. I made one attempt at a short just after the open.

My prep read was fairly clear and the market did what I visualized but not as cleanly as I would have liked.

There was a sloping descending channel for much of the day. It is tough for me to capture anything significant in the kind of action because I do not scalp usually.

My premise was that the 1102.75 pivot put in overnight would be a lower high and the price would retest 1087.25.

The premise is not over yet. We could see the visualization play out. My projections will often play out over a couple days if they do not fully complete intra-day.

Once my initial entry did not work, I anticipated the probability of a channel or contraction and appropriately stood aside.

I have been meaning to do a post about the infrequency of my trading and my thoughts on the pros and cons to this type of strategy.

I am still down for this month but feel like I am doing the right thing. I am not going to try to rush anything this year. Even if it makes things tough for me.

I feel like with my ability to read everything so clearly, that I will prevail in a big way if I let it happen naturally.

There is not much to cover in a video tonight so I will leave the post as is and we will see what the action looks like tomorrow.