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]

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.