D just called to say that BOA has bought MER (which is supposed to be good news), but LEH is rumored to be folding up (very bad news), and that something bad is happening to AIG, and then asked if I've read any of these on the news.
I replied that I haven't, because I was busy trading and making money (simulated trading).
I actually longed ES. It's so difficult for me to long anything that cutting losses on long entries is something I do with great ease. Hence, the risk I take on long trades is usually extremely small.
What happened was that when I pulled up my ES 30min chart hours ago, I saw a gap so wide I didn't bother counting the points or finding out why it gapped. I stared at it as it continued to go even further south after retracing almost to the point where it opened, while listening to Bones & Skulls stories on You-tube the whole time.
Then at 11pm EST, a hammer appeared, followed by an inside bar.
I replied that I haven't, because I was busy trading and making money (simulated trading).
I actually longed ES. It's so difficult for me to long anything that cutting losses on long entries is something I do with great ease. Hence, the risk I take on long trades is usually extremely small.
What happened was that when I pulled up my ES 30min chart hours ago, I saw a gap so wide I didn't bother counting the points or finding out why it gapped. I stared at it as it continued to go even further south after retracing almost to the point where it opened, while listening to Bones & Skulls stories on You-tube the whole time.
Then at 11pm EST, a hammer appeared, followed by an inside bar.
ES 30min
I entered long on the candle after the inside bar, when ES went above the high of the inside bar:
Entry @ 1215
Stop Loss @ 1210 (a level that's 0.7 points below the low of the hammer)
Profit Target @ 1248
Entry @ 1215
Stop Loss @ 1210 (a level that's 0.7 points below the low of the hammer)
Profit Target @ 1248
Trade's set up and I'm earning 4 points now. I asked myself if I would have taken the trade if it were a real-money trade. I would, but my profit target will not be 1248. There's resistance at 1221, and given that ES went down further after gapping down, there's a likelihood that the gap will not be faded. What's going to happen instead is that 1221 resistance will hold, and ES will trade below that level. If that's the case, we'll be looking at a range of 20 points for the day, since 1200 is THE support for 2 months now?
So I have 3 scenarios to work with:
1. ES breaks above 1221, then 1234, then 1248.6 to hit 1262 (about the highest ES will go today, in my view)
2. ES breaks below support of 1200 (I'll have champagne ready when that happens)
3. ES trades within a narrow range between 1200 and 1221 (possible, if the market's as confused as I am now...)
ES hit 1221 a few seconds ago....
Shall see what happens next.
So I have 3 scenarios to work with:
1. ES breaks above 1221, then 1234, then 1248.6 to hit 1262 (about the highest ES will go today, in my view)
2. ES breaks below support of 1200 (I'll have champagne ready when that happens)
3. ES trades within a narrow range between 1200 and 1221 (possible, if the market's as confused as I am now...)
ES hit 1221 a few seconds ago....
Shall see what happens next.
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