Wednesday, January 12, 2011

jan 12 - prep

- yesterday balanced in the upper half of the BA, finding S at midBA
- VA built higher

- ON price moved out of the range, into a DD with a high@1280.25
- initial S@1273.75- BAH and singles between ON DD
- looks like we'll open gap up, I'll focus on any pullback for to see if it finds acceptance back in the range
- ON inventory is long, I have to monitor for the market response to this situation: a strong market should proceed upward, a weak one calls for an inventory adjustment
- rule/tactic for trading gaps: - go in the direction of any gap that isn't filled fairly quick
- for trading the gap apply the spike rules; once in a position monitor for continuation; continuation is monitored by profile elongation, value area development, one time-framing

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