5th October – S&P emini trading – fantastic opportunity (just not for me!)
Hi All,
Today I was able to watch the market from 2pm. The non-farm payroll came out at 1.30pm and cause the market to shoot up.. however, it hit a resistance of 156475 and then just started to head lower bouncing around the levels 1556100 and 155000. These were the tops of the days on the 1st and 2nd of October. I was looking at these as an indication of how to trade.
Anyway, my first trade was a long above 156100 after the markets had opened. The market looked like it had found a base at this level from all the hammer candlestick patterns. The market did indeed head north.. hoorah! However, I was holding out for a move to 156875.
The price action brought my trade to +10 at one stage but then fell and it hit my stop at 155950 which was rather frustrating.
Soon afterwards, I thought that perhaps the market was heading lower due to the low spike breaking the previous level at 155900. I shorted under this level at 155850. It went one stop and reversed to stop me out at 156125.
In hindsight, if I entered long at the above level rather than short, that would have been the perfect trade of the day!
Anyway, my third entry was a long at 156550. The market was moving up nicely and then we hit the US lunch time… I was moving up my stop at this level to minimise risk. However, it hit my stop at trailing stop at 156475 (number 1 in the chart) and reversed.. it has since hit a high at 157325!! In fact, if you look at the horizontal line, you can see that 156475 was the resistance level when the non-farm payroll came out.. I should have put my stop below this!
How annoying! My last two trades.. if only I did the opposite, I would have made a killing… however, it was a very bad -19 prices today!
What’s annoying is that today, the market behaved quite well technically. I can’t really afford to make mistakes when conditions like this present themselves.
(click to enlarge)
