20130502
Short 1 NQ 2888.5, +2.0
Short 2 NQ 2887.75, 2887.25, +2.0, +5.0
Long 1 YM 14709, -0
Short 1 TF 931.7, -0.2
Short 4 TF 932.6, 932.5, 932.6, 932.5, -0.5, +0.5, -0.3, -0.2
Short 2 YM 14738, 14738, -3, -3
Total YM -6
Total NQ +9.0
Total TF -0.7
The Persistent Trend Day model as an interesting attribute. It seldom repeats itself two days in a row in the same direction, but often repeats itself two days in a row in the OPPOSITE direction. Thus today's bull breakouts by the wily TF paralleled bear action in yesterday's steep decline. Although the NQ short entry fades taken in the early going were well within the scope of the trade plan, so were the bull breakouts. I took the YM for this initial breakout, ducking the call to take the more volatile TF, and bought a dud in the process. I stopped out the YM at breakeven while the TF exploded onto huge gains. There is an important lesson and trade plan rule to learned here (not that I haven't berated myself for failing at it many times before...). Use the more volatile leadership instruments for initial breakouts. Don't shy away from it. Get out on the edge of the board and hang ten over the surf. Avoiding the appraised pain of playing breakouts won't be ameliorated by using the laggard. It more likely will only ensure your failure. Play the leadership. The laggards will more likely provide pullback entry opportunities once the leadership is a bit spent. Learn market behavior attributes. Make them a part of your trade filters. Put those trade filters in your trade plan. Trade your plan.
