Wednesday, June 25, 2008

Wednesday Day Trading: ES SR Trendfade Short


In my trading today, I did not trade until after the release of the FOMC RED Report at 2:15PM Eastern time. (Note this report was released 5 minutes early today.) My trade in the ES or emini S&P came at 2:30PM Eastern time, and reached target very quickly.

This is another exercise in patience and waiting until a direction has been established. I liked the trade off the bounce of the ADR (average daily volume.) This trade is what I considered a spike reversal trendfade opportunity.

The FED today left rates unchanged as was expected so the market even at the end of day showed no direction as this decision was expected. The opportunity to trade or in this case, day trade will come suddenly and quickly at times. By being prepared to enter a trade, and having a trading plan that accomodates sudden moves is the way to handle this situation. The key is to know exactly what and how you will approach your trade like today when the FOMC RED Report is released, that is if you want to trade off reports releases.

I like these trades as I prefer momentum trades ... that is a trade that will move quickly, hopefully in my direction.


Good Trades,

David AKA Tiger

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