Wednesday, April 04, 2007

April 4 Trade summary




Well I traded the first 2 hours today, then came back during lunch time for some scalping. The key theme today was exiting too soon on my positions. Like I keep saying, with more experience I'll get better at this. Crude oil and ZN had some nice setups this morning.

Bad things today-
1.Exited too soon, should have left 1 contract open on NQ.
2.Exited 30 seconds too soon on QM, I was using a time stop, and my buzzer was going off so I exited QM right before it shot up 25cents.

Good things today-
1.Noticed a nice relationhip between NYSE A/D and NYSE TICK that I may start using more as part of my strategy.

Market observations-
I decided to go long NQ instead of YM today because SMH was showing strength and NQ was the more bullish of the 2 futures contracts. There was an inverse bond and equity relationship premarket on the British sailor news this morning. Volatility is declining so I'm done for the day. I'm going to work on another post about some setups I've seen lately.

Often times when XLE and crude oil are weak you see an inverse relationship between XLE and SMH. XLE saw selling at market open due to Crude oil selling, while SMH saw buying, giving the more heavily weighted tech based index (NQ) more bullish strength compared to the other indices. For a little more information about the relationship between crude oil and the semiconductors index check out one of my older posts "What do OIL, GOLD, and TECHNOLOGY STOCK's have in common?" Here is what I saw between NQ and SMH this morning.

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