20130405
Short 1 NQ 2746.75, -1.0
Short 1 TF 912.4, +1.4
Short 2 TF 915.2, 915.1, +1.1, +0.5
Short 1 TF 915.4, +1.0
Total NQ -1.0
Total TF +4.0
Huge gaps like today's inspire the crowd into the 'Gap Play'. It's almost a cliche. However, we're in the universe of real leverage with index futures, and early gap closing attempts usually fail. So it's the pullback to new lows that should inspire interest, where initial traders are getting stp'd out. From the Douglas Corollaries: "If most of the money that is lost in markets is lost by traders who thought they knew which way the market was supposed to go, then most of the money to be made in the markets is made at the places where most traders are being stp-d out and proven wrong." Unfortunately, even though I knew this, I still couldn't find long entries near the lows that fit my trade plan. I could smell the turn, and in the chat room was repeatedly calling for longs on lower breaks successively in the ES, YM and TF. But those lower lows that fit my entry models never came, and eventually prices turned back up without me. But counter trend trading is not outside my trade plan, as long as the precise models for those entries are fulfilled. Stay with your plan. There are so many trading opportunities using index futures. Wait for yours to appear at the right edge of the video screen. Trade within your plan, not where you think the market is supposed to go. ...a good weekend to all.....
