SpookyWill

[wshahan 10]

A REAL "SWINGING EVENING"

 

I exited the Thursday day session carrying Short positions in the the NASDAQ at 2759.50, and S&P E-mini at 1395.50. I closed the trades in the Friday morning session for a gain of 32.75 points in the NASDAQ and 16 points in the E-mini.

 

The trades illustrated three key auction market principles:

 

1. Initial Setup

2. Trade entry

3. The critical nature of stop management, especially:

a. Initial placement must be related to market structure; and

b. The importance of not moving stops prematurely.

 

We had a two day consolidation pattern with Thursday being balanced profile. This formation has the possibility of producing a sharp move without predicting a direction. Since value had been migrating lower, and the structure we shorted was a double top with the Globex high, the short was a reasonable bet. The stop management was critical to the trade and many traders would have been stopped out prior to the big decline. This issue will be addressed by me in Monday's chat room session.

 

You are invited to visit my room Monday, April 9th to review Thursdays' trades and trade set ups. Also, to see what Mondays' potential trade development brings. The hope is the review will give you useful information to for own trading. There is no charge for the visit.

 

To visit the room, E-mail me at wshahan@comcast.net for the Go To Meeting Room number.