2013-03-06

$ES_F : 1539-1551 : Market Recap


Consolidation day with bullish bias.

Another new high for bull market.


Today was a day of consolidation with markets maintaining their bullish bias. Here is 5 minute chart of today's day session.



I came in the day bullish as per this trade plan. Overnight the markets were bullish and looking to open strong. After opening strongly gap up on good volume, the initial move to gap fill was rejected and I went long at 1543 (first green arrow) thinking that my entries will not be filled. Market proceeded to make a new high but immediately started giving up the gains. I took my second long at 1540.25 (second green arrow) after market missed my support zone of 1439 by 1 tick and I got my final fill at 1438 third green arrow. Market started its slow grind up after this point after hesitating near VWAP for a short while it shot up to close to day session high. I exited my bulk of position at 1544 forth red arrow and the final position at 1439.5 fifth red arrow after markets failed to close near highs. The comments section of the trade plan describe those trades.  Today was a balanced day overall.
So what do I see now? It would seem markets will target 1546-50 area but at the same time it has traded very close this region already. This is a strong resistance area and if it is not breached on good energy, it has potential to cause a turn around. So far there is no short set-up in play so the trend remains on long side.

I added MSFT and TOL in my stock portfolio. My portfolio is still net short, mainly due to SPY balancing hedge.

Day session range was 8pt and overall range was 8 pt confirming the balanced consolidation nature of the day.