Nickajack Creek Trading Co., Inc.

Support and Resistance Day Trading

December 18th, 2007

12/18/07 YM Trades

Today provided a couple of good trade setups and a couple of scale-in possibilities.  The first trade of the day was a good two target trade.  Trade B was good for one target.

12/18/07 YM Trades

December 17th, 2007

12/17/07 YM Trades

Only one daily SR came into play today.  There was one potential trade setup around 12pm EST, but price would have needed to break the low of the day for an entry.  Price bounced off the LOD and moved higher again.  The day did however present three divergence trades.  Since there were no good SR targets, the trades would have needed to be managed in another fashion (such as targeting previous swing extremes and tightening your stop as price approaches them).

 12/17/08 YM Trades

December 14th, 2007

12/14/07 YM Trades

12/14/07 YM Trades

December 13th, 2007

12/13/07 YM Trades

Not a very exciting day compared to the last couple of days.  There were only 2 trades.  The short Trade A was reversed for breakeven with the divergence Trade B.

12/13/07 YM Trades

December 12th, 2007

12/12/07 YM Trades

Today was a very rare day.  Every trade setup could have been a 2 or more target trade.  What really amazes me about today is how well the YM respected the daily support and resistance areas.

12/12/07 YM Trades

December 11th, 2007

12/11/07 Trades

I took no methodology trades today because it was a Fed day.  On Fed days, price movement before the 2:15pm EST Federal Reserve statement release is usually unpredictable as price moves in anticipation of the annnouncement.  According to auction market theory, if the news differs than market expectations, buyers and sellers will move price in a search for a new fair value.  Today’s Fed announcement was for a rate cut of 25 basis points.  The market’s expectation was 50 basis points.  The difference in the actual news and expectations caused the DOW to drop nearly 300 points.

I took momentum based short trades on the ES when I saw the market nose diving after the Fed announcement.  I traded the ES because it’s heavier than the YM.  The ES trades many more contracts which keeps the spreads tighter with a little less random volatility in fast moving markets.  However the ES was initially moving so that I could not adjust my targets quick enough so I took several rapid trades at market price as my targets were hit.  I then employed Mike Reed’s ‘slinky’ technique (see ‘Read the Greed’ on the Resources page) as the ES tumbled down.  I ended up taking 9 trades in about an hour; 7 good wins and 2 small losses.  This was definitely risky trading, but the down trend seemed so obvious to me that I had to keep riding it until it proved me wrong.  The end result was a very profitable day.

December 10th, 2007

12/10/07 YM Trades

Unable to shake my stomach virus, I spent most of the day in bed.  Below is a post of today’s chart.  The only methodology trade that I see is the arrow I marked with an ‘A’.  Hopefully the comments I made on the chart are self explanatory. 

12/10/07 YM Trades

December 8th, 2007

12/07/07 YM Trades

I was hit with either a stomach virus or maybe the flu yesterday.  I cannot tell which but hopefully it was just a stomach virus.  I’m feeling much better but still have a low grade fever so that’s why I’m suspecting maybe I caught the flu.  Anyways I spent much of yesterday in bed and did not trade.

In reviewing yesterday’s chart, it was obviously a range bound day (hindsight makes analyzing charts so much easier.) 🙂  I marked the chart with 3 areas which I thought I would comment on.

12/07/07 YM Trades 

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December 6th, 2007

12/06/07 YM Trades

I did not trade the methodology today.  The market moved up from the open to the close.  Any long trade given enough time (and a wide enough stop) would have made money today.  It did not look like an trending day until after 2pm EST when the YM took off to the upside.  I had to check the economic calender because I thought maybe there was a Fed announcement today but it turned out not to be the case.  I’m not sure what moved the markets this afternoon.  Below is a snapshot of the trade setups for reference.

12/06/07 YM Trades

December 5th, 2007

12/05/07 YM Trades

The YM trended well today and provided a few nice trade setups.  There were a few setups after the cash open and near 10am EST, but there was a report out at 10am so I decided to wait until after price settled down a little before  taking a setup.

12/05/07 YM Trades 

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