How are you all doing? Alright lets get started.
These are the traded levels today.
FKLI April Contract
Opened 1587.50 from 1590.50 the previous trading day
High 1597.00
Low 1586.00
Close 1593.00
We opened at 87.50 and touched the low of 86 briefly in the morning. Then we slowly but surely bounce up all the way to test all 3 of our resistance levels. We first traded to 89, then to 91 where broke and actually traded to 92. Then we went on ahead to test our third level of resistance of 95 and close at 94 for the morning session. Did you guys manage to take advantage of this up move?
I know I did not. I expected today to be a range trading day, which it actually was. There was market for both the sellers and buyers as well. But timing was very important as usual.
Today, I was waiting to short the market after it had rebounded somewhat at 92. On 2 occasions, I actually had a profit of 1 point before market went up, and back down again. Price just wouldn't break 91. After the second attempt to push down, I notice on the order screen that the sellers orders suddenly decreased drastically. This was my queue to to take quick action and secure fast profits even if it was just 1 point. I hesitated and paid the price.
Had I had a bit more patience and waited for the trend to develop, I would have shorted higher up, at prolly my third level of resistance of 95. Lunch did open higher at 97, but if I had shorted higher, my stop would definitely be at least 98. So.. was right in the trade, but entered too early.
Lunch opened at 97 and we chopped around the the upper ranges and I watch helplessly as I saw price sank as per my morning expectation. grrrrr! In fact, I had a trader Teo who queued to sell at 97 but never got filled. Had he got filled, it would have been a great trade as price tested down to 91.
After lunched opened, the regional market was very strong and the US futures were recovering quite a bit as dow was up 60 points.Take note that at this point, the levels were crazy. The sellers were like 340 vs 124 buyers at the levels of 96-98 and 95.50-93.50. But somehow price was still holding which made me unable to pulled the trigger to sell again in the afternoon.
What would have happened best was if I had shorted a bit higher up in the morning, then I would still be in the short trade in the afternoon.
Lessons learned today:
1) Let trend finished developing and set up to be fairly complete before entering.
2) Entries are critical. Good entry enhances your probability of profitability.
3) Patience, patience, patience.
Well, tomorrow we will have a host of economic numbers and also old boy speaking.. plus it is a Friday trade. So, we will see how it goes after the US market close tonight.
Until tomorrow, ciao traders!
Best Wishes,
Tech Trader
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