The 30 min dummy setup caught my eye. I zoomed in on the 1 min chart and found a 2 min base with a double bottom with a slightly lower second low.

This slightly lower low can often trigger the up move. At the same time the market (QQQQ’s in this case) bounced from a sort of D-pattern. I entered CHL at the break of the 2 min range. I got a bit of positive slippage and was in at 87.48. First target was 88.50 but I entered a limit order for half at 88.45.

I put the stop on the remaining half at breakeven, and after a new high the stop was set pretty wide below the reaction low, 87.87. Over dinner it just got hit (87.85 was the low) .

The worst part however was not the stop getting hit but not getting in again when again it made a sort of reverse H&S on 2 min chart and started another up leg…

I did notice it in time but - wanting to protect the nice profit I already had - skipped it for no good reason. Good reasons being reasons you could explain to another trader without feeling stupid…

BRCM gapped up big time, moved nicely off the opening range. I missed that move but into lunch it had retraced almost the complete move. What caught my eye were several things.

• It had found support on the morning range bar.
• there was a nice 2 wave pullback

Especially the pace development in the pull back was nice. It fell hard at first, rounded of near support, but then again made three pushes down, each penetrating the previous low less then the one before, hence the ’rounding off’ appearance. When the reverse head and shoulder like pattern formed (a very tight 30 min dummy bar) I entered with a very tight stop. (first red line, the thin blue line is my entry)

2R was around the first resistance level so I took half off, keeping the rest with a break even stop. The higher thin red lines are the trailing stops, but I did not enter the last one in TWS, figuring I’d see what would happen.

The dark red line was my second target but it did not make it so I closed the remaining position at exactly 5 minutes before market close.

Solar Power to the rescue… I missed most of the shorting ‘fun’ today, had a few scratch trades. In the afternoon the market started a reversal and I spotted FSLR. It had a 1 min 2 wave pullback and a nicebase after that. As the market was consolidating at the same time it was the ideal spot to enter, but I did not expect it to run right to my target. It did try to scare me out by retesting my entry, but I stayed put and closed all at first resistance, previous days low (thin red dotted line)

Today I did not feel very in sync with the market. When I shorted the market went up, or the market went down but my short did go up. It was a struggle, but there were one or two nice trades that saved the day.

Cenx was one of them. It gapped up, just like many stocks this morning, but came back rather harsh. It consolidated for quite a while, forming a nice little base. When it broke down I shorted and covered partials at 2R. Trailing the rest until the large bullish 5 min candle at support. Closed above that candle.

Today I had a few good trades, IBN was one of them, but I kept anticipating the market reversal.

I traded CIEN long twice, only to be stopped out. It was all very obvious, but it was a matter of trading what is, instead of trading what I want to happen.

IBN was a great trade. The market gapped down and IBN too. The gap down corrected with 2 up waves, the second one slower in pace than the first wave up. See the pink lines below the chart.

The second wave up bounced into the 5 min 20 SMA, that was falling. My first target was the equal move, it got there pretty quick. I took a partial at that target and trailed the rest. I was hoping for a lot more, but I just got a tiny bit more. 3.5R is nothing to sneeze at and it was a nice offset to my anticipating a reversal.

There must be a reason for the expression: “The market always does what the trader expects, but never WHEN he expects it.” This was the case. After giving up on a reversal, the market reversed…

That is what I should do in a market like this. It is a bear market, but I am still in bull market mode… looking for long trades. I should more often take a shot at a short.

At least I made some money today.

Click the chart for an overview

This was a very nice trade. But there could have been more in it. A lot more!

CNQ gapped up and formed a nice base. Just before 11.00 pace changed. The first wave down was the steepest. The second wave was a lot slower and the third wave stayed even more in the upper end . As price was approaching the rising sma 20(5min, light grey line) I entered a long position. I took all of at 2R, instead of partials. Don’t ask me why!

This would have been a great stock to stay in all day. I deviated from my rules and it cost me! Well better this then deviating from the rules and making more money, becuase it reinforced bad habits.

The POT trade was not a really nice trade. I don’t know why but when I entered I had a feeling that the consolidation was not enough. But then I thought, ‘but what if it will go anyway and I’ll miss the move?’. Usually if I think that before entering a trade its going to turn out bad. This case was no exception. My best trades often are those that I really don’t want to enter but I can’t think of a valid reason not to… In this case I ignored this knowledge, traded it and traded it badly.
I gave this trade more leeway then I usually do and had to take a full loss.

click the chart

The currency (FOREX) market is hot. The $ is stone cold. The daily EURUSD chart looked like it could breakdown, but instead it broke to the upside with a lot of conviction. Crazy conviction! But in crazy markets there is often money to be made and the EURUSD was no exception today!

Click on the chart for an overview

DLTR gapped up out of a daily consolidation. After a two wave correction during the day I spotted it when it showed the beginning of a 1 min bull flag. I was impatient in entering and cheated on target. There was only 30 minutes of the trading day left and the market showed some weakness

APOL had a nice 2 wave correction on the 1 min chart. I was a bit late and did not get the best entry.This one just failed to hit target and I got taken out on the trailing stop. Result 0.5R

click the chart for a complete view

PTR gapped up, was strong all day and during lunch showed a bit of a pace change in the range. I entered long when it broke the most recent swing in the range. Altough this one did hit target, I did not get a fill and was stopped out on the trailing stop.

Result: + 0.5R.

It was quite a difficult day with the market gapping down, rallying, breaking down and in the end rallying to the highs of the day. Still, it was an inside day in the in the QQQQ, and though the SPY and DIA broke previous days highs, it proved to be too much resistance to break with conviction. Todays result, 2R, is nothing to write home about but at least it was positive!