09/02/10

Extremely shaky session finished. Trades results - mixed. In the morning there were pretty bullish internals ($tick: 2t.<-600, 4t.>+800; $trin: 0.7; $add: +1.8k w/ SP500: +1.2%). Plus, my long position was also based on secors performance: 2nd strngst sctr, energies (xle), was making higher high. But I was wrong and VWAP have been again tested and finally broken to the downside. Trade was fixed by stop loss order.

But if mkr not soaring - it will fall. On behalf of that rule, plus sharp materials (xlb), strongest sector, slide and large $tick minues's I entered short. Soon fixed on external troubles and on interim no downside move continuation. Wasn't not correct - mkt continued sliding.

Closer to the session finish I again entered short, on financials lower lows and mkt trend to ones again try to break below VWAP. There was move below VWAP but then ES sharply pulled back exactly to the level of my stop loss order, hedging against possible current trade loss.

But mkt seemed to me still trending to go below VWAP. On broad strngst & wkst sectors participation in mkt sliding, once again, I entered short, against bullish internals. That was the most, let me name, 'hot' mistake. ES indeed cracked far below VWAP, but seemed like bears didn't bet on it. It was clear when my prior trade met stop loss. If mkt can not, for several times (in current occasion more than 4), break some sup./res. level - chill out. That's the central trouble for me: i extremely do not like to adopt my trading mistakes. Issue to struggle with. Though, for such occasions risk management properly works. The trade met stop loss and fixed minus near 5%.

Final session trade was based on micro diver and interim bearish $tick numbers. Fixed soon on weak bears participation in the move. But that was too early and mkt continued sliding almost till the closing bell.