Friday, April 20, 2007

April 20 Trade summary

I was done trading after my first trade, but then came back later and took a look at my account and noticed that I needed another $50 to make $1,000 for the week, so I put on a couple of scalp trades and made the extra amount needed.

P/L= $115

Market observations-
Option expiration was the highlight the first 15min, and then things started to tailoff. ZN and JPY are retracing as expected and the Dow has made new highs. I would not hold any longs over the weekend. I'm expecting next week to be very volatile, with a bearish tone. I'm really anxious to see where the market opens on Monday. I've noticed the Mondays following option expiration tend to be trend days, so be on the lookout.

Trade Summary for the week-
Well, I made up for my big loss I took last Friday and made some extra by going back to trading small size and taking high probability trade setups. Overall, the P/L for the week was average, but the amount of time I was in the market when compared to the P/L, was above average considering I only traded the first 2 hours 4/5 days this week.

Weekly P/L= $1,015

Tuesday of this week I posted charts showing Volume gaps labeled with VPOC (virgin point of control), and these VPOC's were filled as expected yesterday. I wanted to take advantage of the Volume gap seen on IWM (ER2 is the futures contract for IWM), but I wasn't able to because the hedgies gapped it down in the afterhours due to weakness in the asian markets, and I rarely will hold positions overnight so I wasn't in the trade. When the market opened Thursday, the VPOC had been hit and the gap had been filled. Moreover, there was no opportunities for short setups to the downside once the gap had been filled.
Checkout the comparison charts. These charts are a good example of how VPOC's and volume gaps can be used as a setup for short term trades.

IWM April 17:

IWM April 20:

ZN Tuesday April 17:

ZN Thursday April 19:


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