Wednesday, March 10, 2010
Planning the Day Trade
Here's a shorter-term view of the pre-opening action in the ES futures; note how we're oscillating around the 1140 area in a relatively narrow range. A breakout from this shorter-term range will set up trade ideas for the day. A weak upside break with poor sector and advance/decline participation or a failure to take out the 1142 area would lead me to fade the move for a trade back into the range noted in the prior post. Solid strength above 1142 would have me holding off on my idea to sell the market until I saw indications that buying interest was drying up. This kind of advance planning is important to the tactics of implementing a strategy on the day time frame.