Thoughts for Friday 12/22
Econ at 830 am and 10 am- Santa Rally continues
After big day yesterday, today was shitty PA as I predicted early in morning, yeah some time I am right.
Going into Globex yesterday I had 76 as Bull bear when price was trading around 60’s and price travelled to 76 by early morning where it pulled back by few points before launching after econ to 94’s after it recovered to > 76. We had really one good short at around noon at 76 that gave 10+ points to 60’. After that we have mostly chop with either -2 or +4’s with pretty bad price action. We had 66 to 76 no trade area in afternoon and it worked great after 3 pm which was pretty good setup but it did not work when we tried once to short 76 (upper edge) and long 76 so we stopped but this were my thoughts at that point, and it did work but we were not in it.
Econ for week:
Night session Trading Suggestions:
I suggest to not trade night session from 10 pm to 2 am chop. If action has to happen than it will happen before 10 pm or after 2 am EST. You can generally play short on top level provided for nightly range and long on lower level of nightly range after 2 am or 3 am. But get out of the way if it rips or drops thru levels and wait for new opportunity or flip. And of course never add to loser and better yet cut it and reset.
Remember: I never short above or long below my marker. I wait for it to pause before it or come back to it from rip/dip and pause before executing.
Never take position before Econ like CPI Or FOMC. After econ watch for levels where it stops and how it interacts to decide long or short.
Recommended stop: -2 and go to BE on +2. Some ppl who can't reenter shall chose -3.5/4.
Scale out: 2 lots at +6/8, 3rd at +10/16, 4th leave runner at BE
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