Easy Futures Investing » Daily Wrap-up June 27, 2008

Monday’s Value Area - 693.80 - 698.30

Afternoon,

I am sorry that I was unable to do the post for yesterday (Thursday). I am working on a trading room/mentoring program that will be available in the near future for a limited number of my readers. I am currently working through the technology issues with a few of my “techie” readers. We have finally found a desktop sharing platform that I am comfortable with and have a few more days of testing before I am ready so stay tuned. So on to the update.

The market opened flat today (Friday) but did not stay flat. It proceeded top drop straight down, rallied straight up before stopping right at the VA (value area) high to the tick. There was an inside vertical bar that formed right at that area at 9:09 am CST with a short entry of 699.70. Woodies Pivot and the 56 EMA was right below the entry. The price paused at the 56 EMA so I took a small profit of 8 ticks. The price continued down and paused at the VA low before railing strongly and forming another IVB (inside vertical bar). Unfortunately, I could not find a strong enough resistance area to take the short trade. That trade would have made the objective if I could have found a reason to take it. The novice trader would have beat themselves up over missing that trade. Once I make a decision to take (or in this case pass) on a trade, I go on to the next trade. The fact that the trade worked make no difference to me after I have made the decision not to trade. Dwelling over not taking the trade is detrimental to your mind set and very costly in psychological capital. Learning this on concept will make you a better trader. Her is the chart for trade 1.

Trade 1

Click on chart to enlarge.

The next trade was an OVB (outside vertical bar ) at a long term trend line AND the 50% fib area as measured form the TS pivot at 9:06 am CST to the TS pivot at point 2 at 10:03 am CST with a short entry of 695.70 AND the VA low.The price moved down and formed another IVB at 11:48 am CST. The stop was moved to 1 tick above that IVB. The trade stopped out at 695.40 for a profit of .30 points. Here is the chart for trade 2.

Trade 2

Click on chart ton enlarge.

As I stop trading on Friday a 13:00 pm CST, the final trade of the day was an OVB (outside vertical bar) close to the 1st hour low. The time was 12:48 pm CST with a long entry of 692.70. The trade took 1 point heat and rallied up to the 56 EMA. Because the price have come off the low of the day, I held on for the 2 point objective. Here is the chart for trade 3.

Trade 3

Click on chart to enlarge.