Wednesday, April 3, 2013

Today's trading and tomorrow's trading

What a day! All equities sold off big time, ZB made new highs. While I shorted TF for a nice gain this morning.

I also shorted 6A for a nice profit (ADX > 60) and price at resistance setup. I had to look at the AUDUSD short for the resistance, because 6A june contract didnt give me proper levels.


This morning, I accidentally shorted 144 '24 instead of 144 '26 which was the 61.8 extension like I mentioned yesterday, but I ended up getting out with a profit on that trade. Next, I tried to short '26, but did not get a fill. Then I shorted '29 and got long ZN, so that worked out as a nice spread trade. I sold ZN for a 15 tick profit, and am still short ZB, poor risk management on that trade.

I also tried an ES long at 55.75 which was the 78.6% level, and it looked real bad and I got out of that trade for -1.25 pts. Turned out the be the right decision. I've also bought some XIV at 23.39, willing to add lower.

For tomorrow, I think we gap up in the morning, so am long some TF since thats the most oversold, it also has a ADX(7) of 70!! Price is also at some support, so lets see how that one works out.

Some things to keep in mind regarding tomorrow:

  • SPX drops 1%, decliners more than double advances - buy on close, next days close, profit factor 1.6
  • there's a trading market setup which sets up today - TRIN over 1 for 3 days, RSI(2) below 30
  • NYMO closed below lower BB http://stockcharts.com/public/1684859/chartbook/287171245;
  • This is not good for an intermediate trend - Relatively strong high volume drops from 10-day high levels in an uptrend more  often lead to further selling than an immediate rebound.
  • NYMO ended at -54 today and price has bounced atleast a little off this level recently. 
  • VIX jumped 11% today, $TRIN closed at 1.6, often leads to short term rebound. 

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