Dear diary,
eCBOT exchange is down again. How can this happen so often? Tell me.
1030am NY time.
Trading diary: 03-Oct-2006 Tuesday Morning ???
Dear diary,
This morning market started with negative tone. I did a quick scalp in 5-minute chart of NQ to get the mood right. I shorted NQ futures for very small profit. This is a squeeze trade as bolliger band was squeezing in Keltner channel and momentum turned negative. Short position was established when it broke down from the squeeze channel.
Let’s look at the market condition for the first 30 minutes of regular session. We have small gap down in NQ(E-mini Nasdaq) and ES (E-mini S&P). NYSE TICK spent most of time below zero, while NYSE TRIN was shooting above 1.25 level and trending up. This is not so good for bulls. For the time being, I will just ignore all Long setup. Volume is good enough to construct a volatile session.
Here is the chart of the scalp trade.
[photopress:NQZ06_Squeeze_setup.jpg,full,pp_image]
Postmortem 02-Oct-2006
Dear diary,
Good morning from Singapore. I have made two trades today. As I told you before, I am integrating NYSE TICK and NYSE TRIN. Looking for holy grail after bad months like August and September? 😆 NOPE!
I have been looking for a way/tool to give me a better picture of market breath. Market tone is an important element of dummy trading. Dummy entries work better when we are actually ‘joining the crowd’.
Looking back at the last 2 trades, the solution should be DON’T TRADE. I was looking at TICK over +400 but TRIN was trending up (An up trending TRIN shows volume are flowing into declining stocks.) When dummy setup appeared in this kinda situation, I should just ignore it. (In fact, TICK and TRIN had been keeping me away from SHORT position during first 2 hours of trading)
Anyway, it was indeed another choppy day. Opened low, flat, up then down. No damage to my account since I am almost flat for the day. But, good feel of trading with TICK and TRIN.
Learnt something. Let’s fight another day.
Dummy day trading #31 02-Oct-2006: YM Long trade closed
Dear diary,
This is the last trade of the day. I got in Long position of YM again, after it pulled back to moving average and a dummy setup appeared, very nice narrow range candle. TICK closed at 401. I was stopped out with 1-R loss.
In fact, there was a divergence in which TICK was making a lower highs while YM trending up. I will talk to you more later.
Here is the chart after closing the trade.
[photopress:YMZ06_15_trade_closed_2nd.jpg,full,pp_image]
Dummy day trading #30 02-Oct-2006: YM Long trade closed
Dear diary,
This week is kinda experimental for me. I am integrating NYSE TICK and TRIN into my trading.
So, it is experimental, and I’ve just made a stupid trade. Not dummy trading, but stupid trading. I got in Long position of YM (Mini-sized Dow) in 15-min chart after getting a dummy setup with narrow range and TICK closed at +800 which is pretty positive.The setup looked excellent.
The mistake is here. I closed the trade almost immediately after realizing uptrend in TRIN. Moron. I don’t know if this decision is correct. But I was confused by indicators. I am not new to trading, but I still have this problem. Ok, I will think about it and talk to you later. One trade closed with 0.32-R gain.
Here is the chart after I closed the trade.
[photopress:YMZ06_15_trade_closed.jpg,full,pp_image]
Trading diary: 02-Oct-2006 Monday Morning
Dear diary,
It is October. Seems like people are expecting this month to be a better month for trading. Well, I really hope so.
Here is what I see in the Monday morning. First 30 minutes of regular session, I am looking at 5-min chart of E-mini S&P. Volume is not impressive, just enough to contribute a volatile session. TICK stays positive for most of the time, however, it is below 400 level. TRIN is trying to trend up, though it is still below 1. At least for now, these two indicators do not tell me a clear direction of market.
It looks like we are going to see another choppy day. I am still waiting for clearer picture.
Talk to you later.
