20121105
Long 2 TF 809.7, 809.8, -0.4, -0.3
Short 2 TF 809.3, 809.3, +0.4, -0.4
Long 2 NQ 2645.5, 2645.5, +2.0, +4.0
Short 1 TF 811.9, +1.5
Short 2 TF 813.8, 813.5, -0.1, +0.5
Short 2 YM 12998, 12998, +7, +10
Short 2 YM 13017, 13021, -0, -5
Short 1 TF 815.7, +0.9
Short 1 TF 816.7, -0.1
Short 1 TF 816.7, -0.3
Short 2 YM 13036, 13036, +7, +19
Short 2 TF 817.4, 817.4, -0.2, +0.9
Total NQ +6.0
Total YM +38
Total TF +2.3
Choppy, grinding markets are always a challenge, and it complicates the technical messages given that one trend direction is changing to the other. What is trend and what is counter trend becomes eye-of-beholder. But that doesn't have to change your plan if you're using Serial Sequent Wave method instead of Elliott Wave. E-wavers must depend on being able to identify the difference between impulse and corrective structures. Thankfully, that's not a issue with Serial Sequent. Today, there were ample trades in both directions, and the lows were called with Sequent rules in both the NQ and YM contracts with great success. Once reversed, however, the opportunities for bull, in-trend breakout plays were hindered by negative filters we attach to the models. That means, we had to wait for short entry wave signals to align with the exhaustion and turn of the bull momentum indicator to bear. Once there, a weakness in my trade plan again becomes apparent, that is, when to shift from a quick profit mode to a more patient, trend developing runners in exit strategies. Playing catch-up to earlier small losses often affects exits whose holding times should be extended to suit the change in signals. This is one of the toughest things to handle in trading. When to let 'em run. Identify the clearest recognizable aspect to the WorkDone concept of one trend rolling over to the next, as a clear Event Concept entry model for the new budding trend checks all filters as a 'Go'. Then shift your exit strategy to include a runner with a loose trailing stop-loss until the next WorkDone / reversal signal appears. Construct the language of this rule clearly into your plan. Re read your plan with an exacting understanding. Be prepared to recognize your plan when it unfolds at the right edge of your video screen. Trade your plan. Keep the discipline.
