Friday, September 5, 2008

Friday Notes - Market Pace From Heaven

12:10pm Pinch me. Then again, don't. It's been a long while since I had back to back $23K mornings and so I'm putting the brakes on here. Traded the morning very similarly to yesterday ... again passing on the first fade (which would have been a short this time) and getting into "fade the extreme" scalp mode. Also noticing how much easier the turns are to trade with this rhythm vs. that August from hell ... e.g. divergences, double tops and bottoms, and the ability to trade with extremely tight stops with reentries that don't eat you up. This must be how markets trade every month in Heaven.

15-minute in control heading into midday but my brain is officially toast as the focus over the last two days has been incredibly intense. I truly did enter today's trade thinking I'd just drawn down big yesterday, which helped carry the focus over from yesterday despite very little sleep.

Got good chunks of the 11:04am & 11:20am ES barfs as white towels were lining up left and right, nailing several strong price entries and scaling out for the 2-3 point snapbacks. You could just see traders trying to time the turn and getting frustrated all morning ... including me at times as I was providing light liquidity waiting for the turn and kept scooping up modest long positions every time the traders lost their lunch. (The turn had to happen, otherwise at the current pace ES would be trading at zero in about a week).

Having said all that, I'm very well aware that I have to quickly forget about these last two days, which happen about once a year. The trading will get tougher next week and I'll need to be alert and ready.

If you're new to the blog, please read the early July material ... the results of the last two days are the exception and have to be put in perspective of this year-long journey. I always said I'd post the truth ... good, bad, and ugly ... it just turns out there was some good over the last few days.

Today truly does mean nothing on Monday. Heck it means nothing now.

I'm going for a long break and will post again over the weekend.

12:34pm Hang on ... this is getting silly now ... was about ready to hit post and caught a "would be stupid not to take it" 33.75 short, taking it out on the drop back ... best cover 31.75. Small size though. 15-minute trend no longer in play as it hands the baton off to the 30-minute. This triggers some more thoughts that I'll post over the weekend as in, "When they're handing out free donuts ..."

12:39pm One more sequence ... short from 33.25 ... that 30-min should kick in, but I'll take 2 pts.

12:45pm Flat ... best cover 30.25. $27K net on the day.

Unreal ... too bad the market's closed tomorrow. Will definitely need to eat several helpings of humble pie over the weekend as I almost caught myself laughing.

Need to find that chart ... here it is:

I'll need to come back from this fall on Monday. Damn.