Wednesday, June 3, 2009

Wednesday Notes - Crisp Day

4:00pm ‘Twas an interesting day at this end in that I – like many – came into the U.S. session looking for early wholesale buying opportunities as we had hourly support around the opening range, before the market did its own thing and carved out a trend day down before the last half hour pop.

And while the day wasn’t a home run at this end, I did well to recognize the emerging intraday pattern and adjusted to carve out a modest profit on the day which wrapped up around 3:30pm after covering the final short.

Of particular note for me was my sharpness in adjusting to the action, as well as execution crispness … most notably on the 9:48am and 2:54pm price vs. TICK strength divergence pops and 3:05pm weak divergence drop which was synchronized with 15-minute price resistance ... all three scenarios leading to profitable sequences that more than offset the cost of antes. And it’s been quite a while since I’ve used the word “crisp” in describing my executions, as the crispness has been sorely lacking as of late.

Today likely frustrated a great many traders looking to go long.

At this end, it was another step and sign of possible emergence from the recent mental cocoon as mental flexibilty and execution combined to keep me in the green.

If it continues, we'll start ramping up the size and work on putting some real distance between the current balance and the recently enacted stop.

June 27 Cookout Reminder!


Severino said...

Hello Don,

Did you buy (sequence) at 9:48 on the divergence of higher high on tick, lower lows on price. Or did you fade the pop a couple of minutes latter on tick (only got to around 300) not confirming price?

Sorry for the specifics. I know one trade (sequence) does not mean much in the scheme of things.

Just trying to build a house one (b)tick at a time. If you have a chance to ask a master craftsman it could not hurt. And yes there is no one style of house that is right. Well, except for maybe a straw one.

Thanks as always.


Don Miller said...

Sev -

I bought the divergence, especially as I was looking for wholesale long entries early, and took the wholesale exit at 935.25 (one of my better exits in a while).


Being said...

Today's action made me look for signs. Why do gaps close some days, and some days not? This chart had a gap up from 5/29. The distance between this morning's open and that 5/29 gap was ever so slighly smaller than the distance to yesterday's close. So I sort of see it as gravitational attraction. It gravitated to the closest gap fill. Haven't back-tested this.... just observed the current instance.

Vic said...

Hi Don,

On your 9:48 trade what price did you buy?


Don Miller said...

Vic -

Pretty much at the point of divergence ... 932.50 to 933.25. After exiting, I was looking for signs of the market holding and considered getting back in long if it did, but never saw it and was cautious ahead of of the 10am data.


Don Miller said...

EK -

I've personally never prescribed to the "gap closes" or "doesn't" theory, and especially don't care to ever consider gap effects from prior days.

I've got my hands full trying to interpret the live data before us :-).


Jay said...

Ho Don I noticed you dont post your actual winnings and losses anymore why the change?