Monday, October 27, 2008

Monday Notes - "Rangebound"

3:30pm - OK, the title to today's post is a bit ironic as ES had about a 40 point range. Yet compared to recent action, ES indeed remained somewhat rangebound today as it traded completely within Friday's range ... at least in today's regular session (assuming it doesn't spike in the last 30 minutes, which could certainly happen).

At this end, I felt I read the market fairly well today and have continued to fade TICK and price extremes against larger trend supports with a fair degree of success. And considering my tendency toward poor Monday performances, I chose to keep sizes light and pass on what I considered more marginal liquidity-providing trades (although my reads seemed strong on those as well), and carved out a decent, albeit not overwhelming chip gain of +$14K.

Yet considering this week's earnings and FOMC landmines, it's an acceptable start and I expect to continue to play defense much of the week.

Now all I have to do is believe I got scorched today to avoid potential Tuesday blues.

4:06pm P.S. Guess I spoke too soon. No damage done here though ... chips tucked away.

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