This is my journal I am using to stay disciplined with my trading. I will have my market analysis as well as self analysis included here. Also some articles I particularly like or other ones that I write just to get the thoughts down.
Trade Setup For 22nd July
Posted 07-22-2008 at 02:25 AM by jasont
Here are the zones I'm watching for 22nd July:
Resistance
1263-1261.75
1269.25-1270.25
1277.25-1278.50
1285.75-1286.75
Support
1251.50-1252.50
1246-1245
1240.25-1239.50
1233.50-1232.25
My Outlook
Not much happened from yesterday as it was relatively quiet. For me that signals trouble for the buyers as we really need to get off to a good move soon. Without it we can see the sellers taking control and keep momentum on their side. Apart from that there isn't really anything worth noting at this point.
My Focus
Currently we are hanging around the 1251 area in the overnight market. If we open down here I would be looking for a move back to the 1256 area to have some weakness enter. I haven't marked 1256 as a s/r level but it was one I wanted to put in. It is too close to the other levels so have left it out but will keep a mental note of that area should we see any extremes occur near there.
I will keep my eye on the action as we hit the 1252 support area. I will see if there are any signs of life from the buyers down here or if the sellers exhaust themselves down there. Otherwise beneath 1252 it is the same as yesterday, the momentum is likely to swing back to the sellers.
1262 is going to be an important area for any continued buying. If we reach there and can't break through, the sellers will be able to gain the upper hand. Right now there is more sway to the selling side. I will be cautious with my long trades and monitor them carefully.
Resistance
1263-1261.75
1269.25-1270.25
1277.25-1278.50
1285.75-1286.75
Support
1251.50-1252.50
1246-1245
1240.25-1239.50
1233.50-1232.25
My Outlook
Not much happened from yesterday as it was relatively quiet. For me that signals trouble for the buyers as we really need to get off to a good move soon. Without it we can see the sellers taking control and keep momentum on their side. Apart from that there isn't really anything worth noting at this point.
My Focus
Currently we are hanging around the 1251 area in the overnight market. If we open down here I would be looking for a move back to the 1256 area to have some weakness enter. I haven't marked 1256 as a s/r level but it was one I wanted to put in. It is too close to the other levels so have left it out but will keep a mental note of that area should we see any extremes occur near there.
I will keep my eye on the action as we hit the 1252 support area. I will see if there are any signs of life from the buyers down here or if the sellers exhaust themselves down there. Otherwise beneath 1252 it is the same as yesterday, the momentum is likely to swing back to the sellers.
1262 is going to be an important area for any continued buying. If we reach there and can't break through, the sellers will be able to gain the upper hand. Right now there is more sway to the selling side. I will be cautious with my long trades and monitor them carefully.
Total Comments 4
Comments
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what do you make of yesterday's premarket action? it went clearly above 1262... do you give it less importance therefore?
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Sorry FW, I'm not exactly sure what you mean. Are you talking about the overnight market leading up to today or the overnight market leading up to yesterday? I had my Resistance area at roughly 1264 yesterday and have it roughly at 1262 today.
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Sorry if I didn't make myself clear. I was talking about the premarket action and the open yesterday around 1269...
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I don't place too much emphasis on the overnight market. I usually look at it to see where we have been but I personally believe we have different traders trading during market hours to the overnight hours.
I actually give levels that are gapped over more importance. I actually didn't move around my s/r levels into the right columns on Monday. I just copied and pasted from my spreadsheet I had from Friday because the levels didn't change. The fact that we gapped above the 1262 area meant to me that traders who were short the market around that level early on Friday 18th July would be stuck if they didn't get out later in the day. When we opened at the 1269 area on Monday they would be looking to exit their short positions as close to breakeven as possible if we reached that 1262 area. If you look at the action at 1262-1261 on Monday you can see that we bounced pretty quickly when we first reached that area. My guess is that quite a few traders had shorts over the weekend which they had either early or late on Friday. |
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Recent Blog Entries by jasont
- Moving Journal (08-03-2008)
- Trade Setup For 1st August (08-01-2008)
- Trading for 31st July (08-01-2008)
- Trade Setup for July 31st (07-31-2008)
- Trading for 30th July (07-30-2008)
