04/03/10

Tough session. Just shoot me off! Morning trade opened on technologies as well as whole Nasdaq Composite futures index weakness. But later the sector w/ index have recovered. And no matter weakness in other sectors ES unfortunately did touch level of my stop loss order. After that it sharply pulled back.

Evening trade was opened because of no $tick & $add lower lows. Even further, after the entry, micro bullish divergence w/ NQ & ER confirmation have appeared. Volume was too low. Nevertheless, ES did manage to climb far above VWAP. Fixed w/ arguments:

1) Huge selling contracts, as hour and a half before, were at a place;
2) After $tick fresh session high bulls momentum, as it was during yesterdays evening, could be finished. Bearish divergence was likely to appear;
3) Internals not in favor & calling for range day. So, bulls leg higher could be finished.

But the fix was mistake. ES did continued to soar and I have lost a lot of profit. Indeed, my reasons of exit listed above were faulty:

1) I did say the plot - "as hour and a half before" - but didn't get it. Even there were huge sell orders, ES did climb higher. In summarize - do not pay attention on buy/sell orders;
2) Wrong. The likelihood of yesterdays repeat was not so much to count it in;
3) Internals indeed were pretty bullish during the last 2 hours of the session w/ no $tick below -500.