Monday 9/1/11

Good Afternoon, we got another outside day on Monday which are always my favorite days to trade, & offer the greatest profit potential. So lets jump right in.
   I didn't trade the first hour of crude because I knew we were gonna get nice volatility in the indexes so I only traded in the S&P and Nasdaq the whole first hour of crude. Not to mention the only real setups I would have had was a long right off the open, as we basically got an opening drive open up, & I would have been interested in a short in the 98.50 area because it was a nice lvn from the past week of trading, & it was basically the low from 7/22 & 7/25.

Trade 1: Long 97.11 (10:00)
Why: As I went over in the last post, opening drive opens (where the opening print is the low/high of the day up to that point) makes the open even more important, because its also going to function as the high/low of the day & IB high/low. I never really like to fade this kind of open unless the market PROVES to me that we are no longer 1 time framing in the direction of the opening drive, or we approach a major area to do business in the composite. So right after the # came out at 10 we retested the open at 97.11 which is where I got long. Again, if we were going to continue to move up, this is the area that we should have held. We moved back up like 30 ticks, I got 1 scale off, then was stopped flat when we broke through the open to the downside.

Trade 2: Short 97.09 (10:05)
Why: If we were gonna head back up, we should have held the open, & we didnt, so I took the short just under the open, I ended up eating 10 ticks on this trade, it went just high enough back above the open to headfake me....its the cost of business using this style.

Trade 3: Short 97.06 (10:12)
Why: Same reason as trade 2, when we dropped back under the open, I just wanted to see a 1 min candle hold under the open before I got back in, so entered short again right after that just under the open, looking for a test of prev days range.
Result: We made it down to test fridays high, got a tiny bounce, then dropped back into fridays range, I ended up closing the trade out at fridays low around 95, for lil over 2 bucks.
As a side note: If I was not already short, I would have got short as soon as dropped back into fridays range.

Trade 4: Long 94.98 (11:02)
Why: We held Fridays low on a 2nd retest, & I had just covered the rest of my short, so tried the long, w/ a stop under 94.86 (& would have flipped short if stopped). This was only a 1/2 size trade because of the context of the day (we were 350 ticks off the high of the day). I got 2 scaled & was stopped for +1 tick on the rest.

Trade 5: Short 94:84
Why: We broke under Fridays low.