20210907
Short 3 MYM 35137, 35137, 35137, -2, -2, -2
Long 3 MES 4517.5, 4517.5, 4517.5, +4.0, +4.0, +4.0,
Long 3 MNQ 15618.0, 15618.0, 15618.0, +20.0, +20.0, +20.0,
Long 3 MNQ 15616.25, 15616.25, 15616.25, -0.25, -0.25, -0.25,
Short 3 MNQ 15641.0, 15641.0, 15641.0, -1.75, -1.75, -1.75,
Short 3 MNQ 15647.0, 15647.0, 15647.0, -5.25, -5.25, -5.25,
Short 3 MNQ 15654.25, 15654.25, 15654.25, -5.25, -5.25, -5.25,
Short 3 MNQ 15663.0, 15663.0, 15663.0, -5.25, -5.25, -5.25,
Short 3 MNQ 15671.75, 15671.75, 15671.75, -5.25, -5.25, -5.25,
Total M2M -6
Total MES +12.0
Total MNQ -3.75
If 2nd trends tend to be true, and there are more Test-n-Reject Day Models than any other, then using pullbacks against the 1st trend as a way to participate in its direction is less likely to produce profits than fading the 1st Trend direction altogether. ....but that is precisely the opposite of what most books and pamphlets have to recommend regarding 'best practices' in trading futures. ....especially when the 2nd trend is a bull rally in the Nasdaq futures contracts...
These things are hard to know in the moment. Consider today, for instance. It was not difficult to see that the NQ had the best relative strength and most bullish chart in the longer term 60 minute frame ....and yet, it was the bear leader in early selling.
The real best practices today was fading the two bigger selling spikes in the NQ/MNQ contracts in the first trend. This seems almost like foolishness to the less experienced and less technically informed. However, it was trying to use the NQ rally as a pullback shorting opportunity that did the real damage. Continuing to froth, it was full of surprise. I quit my tightly measured attempts to short a high in that bull reaction when I gave up 90% of my profits from the early bear selling fades.
Keep an eye on your behavioral triggers. Have a profit goal, and avoid letting a profitable day become a loser no matter how many of your technical tools suggest the 2nd trend reaction may be coming to any end...
and good trading to all....