8/27/07 General Trade Log / Idea Sharing

[AbeSmith 10]

Hello. Dow is currently down in premarket. Today we have the Existing Home Sales report scheduled for 10AMET. Asia and Pacific indices are up. Europe is mostly up. Good trading.

[brownsfan019 17]

Good trading Abe! That was some bearish movement in pre-market.

[AbeSmith 10]

Good trading Abe! That was some bearish movement in pre-market.

 

Hello Brownsfan. Good trading.

[AbeSmith 10]

Setup 1: -10. -10.

[MrPaul 10]

Setup 1: -10. -10.

 

Abe,

 

That actually wasn't too bad of a trade entry wise. The only thing that was of alarm to me is the huge volume on the downmove. That much volume just for a simple down bar is showing that their could be a bunch of demand included in that volume.

 

The next few bars show this because the makret can't make it's way down ( demand is holding firm).

 

This should just be something to note. healthy volume on a down move is good, showing that there is little in the way of things to stop it (like a thick floating area of bids).

 

[AbeSmith 10]

Setup 2: -7. -7.

[MrPaul 10]

Setup 2: -7. -7.

 

Again Abe not a bad entry, you just got taken out on a stop run. A stop order thats placed after a hammer should always be placed under the hammer until a reaction low has been formed. It would take effort (money) to run a stop below that.

[brownsfan019 17]

Abe,

MrPaul has a great suggestion there on where to place the stop based on the hammer.

[AbeSmith 10]

Abe,

 

That actually wasn't too bad of a trade entry wise. The only thing that was of alarm to me is the huge volume on the downmove. That much volume just for a simple down bar is showing that their could be a bunch of demand included in that volume.

 

The next few bars show this because the makret can't make it's way down ( demand is holding firm).

 

This should just be something to note. healthy volume on a down move is good, showing that there is little in the way of things to stop it (like a thick floating area of bids).

 

 

Good point Paul. I see the 200SMA on the 5min around 13347 coincides with the buy demand, and on the 15min it looks like 13335 was a support level on Friday. 2 support levels only 10 and 20 points away from the broken down pivot seems to have been a risky area to go short in hindsight.

[AbeSmith 10]

Again Abe not a bad entry, you just got taken out on a stop run. A stop order thats placed after a hammer should always be placed under the hammer until a reaction low has been formed. It would take effort (money) to run a stop below that.

 

That makes sense Paul.

[AbeSmith 10]

Setup 3: +10. -3.

[AbeSmith 10]

Setup 4: +4. +4.

Setup 5: -10. -10.

[AbeSmith 10]

My trading summary today:

 

5 setups. 10 round trips. -39 net points. $237.60 paper loss.