Thursday, December 18, 2008

Thursday Notes - P.M. Green Light

5:30pm Well, the market that's been frustrating every trader trying find a trend finally found some rhythm in the afternoon when all supports gave way, the VIX turned north, and the shorts pounded the market hard.

At this end, I remained in my conservative mode through much of the day which paid "non-loss" dividends in the morning by keeping me out of the volumeless chop, although I did take an early hit on the failed 11am breakout attempt north that I felt was primed based on the declining VIX and early price strength. Nevertheless, the afternoon break and first pullback short entry allowed me to overcome the early stop to increase the day's chip stack modestly by a few thousand.

Not a home run by any stretch, but I'm simply looking to close the year with a few solid base hits as I look to regain a crisp trading rhythm as I slow down into year-end (a bit tough when the market is standing still 90% of the time as has been the case lately).

Chip Count Correction - Please note that I did an audit of my year-to-date results last night -- comparing my financial system to brokerage statements -- and discovered that I'd accidentally entered a July 2008 trade as July 2003. The result was that July's results were understated by about $20K, and both the chip count graph and monthly equity charts to the left have been adjusted to correct the error.

Two reminders for Friday -- First, as I mentioned yesterday, I'll be posting the year-to-date tally with the protective earnings trailing stop after close. Protecting gains is now my most important objective, which is a purposeful shift from earnings accumulation objectives that took priority over the first 11 1/2 months.

Second, will be publishing Part 2 of my interview with David Penn on Friday evening. In it, I'll discuss poker, betting size, and this blog. I'll post a direct link on this site when it's up.

I'll also post a video tonight.

1 comment:

trader said...

Don, Happy for your winning day. When I in the market afternoon, I told myself that Don must get profit from grasping and loading the trend, and that's it!
As a novice, the market pattern today have frustraded me.I can't adjust quickly from low volatility market to strong trend with high volume market.For the non-trend market I instinct to buy in the first great falling.Recently, I have tried to trade SPY by ES future type reading. Yesterday may more clear for me. But today is hard to read the type. I have not trade much in the morning and noon. The afternoon market had many opportunities, but I got hurt when the price pierce 900 to 890 then I lost my patience which lead to a modest loss today.It looks like that I should hold my position with more Cut Loss Point in the afternoon market.
I don't know if you have noticed that there are 5000+ contracts offer in the 890 and have been filled when the ES bound from 885 which I haven't seen in any other time today. Does it mean anyting?