31/03/10

During the morning hours opened long position, because 1) materials (ones the strongest and the leading reason of the market slide tens of minuted before) did post lower low, but ES not reacting any more, even further 2) ES didn't made lower low unlike it had made its peer, Nasdaq Composite futures index. Soon fixed on the reason of financials, unlike majority sectors, was not making higher highs. Plus internals were mixed so it seemed that the day would likely become range type.

434th, already evening, short trade was opened on the reasons of: 1) no industrials (one of the weakest sectors at that moment) higher high; 2) internals were in favor w/ 5 $ticks above +800 and zero below -800 and finally 3) $tick didn't confirmed recent /es lower low. But in fact, ES didn't manage to back above VWAP and continued to slide. Stop loss order fixed the trade. Want to not following notes in this case:

1) Strong bearish momentum brought ES below VWAP. So in the market environment when bears became really strong for since a time before till present, micro diver that have appeared right before 434th trade entry was not as strong as it should be to react on. Overall, it was just to early entry;

2) I did opened last session trade when one of the weakest sectors haven't managed to make fresh interim low. But the leading strong sectors, have continued to slide. So the conclusion is that, only when the weakest and strongest sectors move in the same direction (w/ weakest sectors superiority when it is an upside move and vise versa, w/ strongest sectors more actively selling when it is downside move), the move will carry over the broad U.S. stocks markets.