4:00pm Was the market open today? (Only kidding.) Talk about a consolidation day. I guess you know Someone is looking out for you when on the day you decide to scale back, the market presents an absolute chopfest with light volume and liquidity, as well as essentially no trend on any timeframe in play (note the plunging ADX readings on most intraday timeframes). Is that an eerie coincidence or not?? I'm seriously wondering if other traders have also "hit the wall" and decided to pull back.
True to my word, I "slept in" today and only traded 764 contracts ... keeping contract sizes on trade sequences small to tiny (we're talking 5 to 15 most of the day!). The best sequence came on the 1pm break out of tight consolidation which took ES toward its hourly resistance. Other than that, I nibbled on a few 5-min consolidation breakdown attempts, but the market simply had little interest in extending itself either way today.
So today's result essentially reflects minimal transaction costs only, and I'm pretty pleased with the scratch day -- and more importantly, sticking to my guns on keeping things light. I can see where many could have been tossed around like a rag doll in a pit bull's mouth today.
To that point, I think today was a great example of the need to vary one's trading size, as well as taking the foot off the accelerator given conditions presented. In my case, I admit I was a bit lucky with respect to timing my backing off.
As they say, it's sometimes better to be lucky than good.
I'll take lucky today.