July 14 2010 Overlay and Trades

My read was off this morning and it really showed this AM.

I have said before that anytime I mess with my zones while preparing the prep that there is something off.

I moved the 1091.25 resistance area to 1089.50 but the problem was that support was at 1085.00. I had a tough time with my zone reconciliation because there were multiple oscillating bounces and support areas between 1063.25 and the Globex high.

It did not look right and instead of taking the extra time to visualize I produced a cookie cutter zone. This is not typical of how I conduct the prep.

I played the manufactured 1089.50 potential inside support and got chopped with 3 stop outs. I managed them tighter than usual so the net result was not too bad. I knew something was off and should have waited for a clearer setup.

The only trades that were according to plan were the first and the last. I was looking for a short squeeze all day and had a decent plan but I was chasing the entries.

It will never work to chase a squeeze. You need to be in prior to the squeeze or you miss it. If you are able to make a late entry, you become the squeezee.

Action was ridiculous and there was no follow through to the upside as should be expected in this stretched trend up. The short side was also tough as noted in the prep.

I am down a couple points on the week and need to exploit what I can over the next 2 days.