Friday 12.03.2010 - Daily recap

After an open way above VA, on new highs, premarket move being fueled by better than expected retail sales numbers, sellers stepped in on a weaker UoM consumer sentiment and price went down to 1142.00 support area and VVAH from Thursday. The IBL was set in stone at this number, price being rejected right away from this level, finding strong S in 1143.00-1144.00 area.

Rest of the day was a range bound between strong R=1146.50 also the high from previous day & S=1143.00. We saw acceptance in this area, volume building up between these levels, price never went down to test the VA from Thursday.

These type of days seems to become very common lately, one big move either in the first hour or the last one and just ranging for the whole day between 3-4 points S/R levels. I think I should develop a strategy for trading these morning opportunities by observing and analyzing more closely the overnight & premarket action; see if I can find a strong edge to rely & trade on.

Ideal trades: after the IB

- being a range day: long at S=1143.50 exit & reverse at R=1146.25, could have been done 4 times;

My trades:

- L 1144.00 stopped 1144.00 P/L -0.00; S=1143.50 for a test of IBH.

- L 1144.00 exit 1145.00 P/L +1.00; S=1143.50 test for IBH, exit after failed to break 1146.50 area.

- S 1144.75 exit 1143.00 P/L +1.75; fail to break R, VPOC=1145.25 acting like small R, break from ascending channel, exit failed to break S.

Poor trade management on the first 2 trades, because I was too greedy, expecting a move up to test the IBH after the IBL was set and rejected and I set my target according to my expectations. I underestimated the significance of 1146.50 resistance level which should have been my exit target at least on the first trade.

Net P/L: +2.75