Wednesday, April 8, 2009

April 8, 2009 Wednesday Trades 1-3

Bad morning for me. The first two trades were simply bad trades, the third was an OK entry but too soon to go long against the morning's selling pressure.

Trade 1 - Tried to go long to catch the opening range breakout, which do not work well under normal circumstances (take them, for example in the direction of gap fill right after a NR7 day). Basically I trapped myself long on an overbought condition near resistance, sort of dumb. Stopped out -2.25, -2.5 points

Trade 2 - Tried to go long again on pullback, but here we were not oversold enough or near any strong support area. There was bid/ask buying volume temporarily on our side and an oversold condition hooking up on the small 233 tick timeframe, but these positive items only produced a 3 tick pop before sellers overwhelmed the buyers. Stopped out -2 points

Trade 3 - At least this entry was oversold on the 3 minute chart and also had the 3 minute bid/ask volume bars green on top. The positive items going for the trade allowed the trade to go 1.25 points in our favor. However the momentum was such to the downside that some intraday support levels were overshot including the 10 min 200 sma, VWAP and 50 sma on 3 min chart. Finally support was found a tick above yesterday's low. Stopped out -2.25 points

Trade 1 (Long 2 Contracts Stopped Out -2.25, 2.5 points):
Trade 2 (Long 2 Contracts Stopped Out -2 points):
Trade 3 (Long 2 Contracts Stopped Out -2.25 points):
Trade 1,2,3 Screenshot

Note: These first three trades were all taken against the direction of the gap fill, there was a gap up this morning of 7.75 points at the highest level since the open. The gap was filled to the downside.