Trading the Pivots

If you pull-up your charts, with the:

DMA 28/14,
CCI Histogram, and
Stochastic Momentum Indicator

You'll see that the trend is Up as I would define it using these indicators ... and just to impart my (small) experience to you ... I never trade against the trend (anymore), because to me it's like putting my small acount in front of a train and waiting for it to stop, with the expectd results.

However, the market could retrace, which would then give us another Buying opportunity.

Why?

Because 1st Resistance was hit a second time.

Best,

JJ
 

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Quote from Cazza La Randa:

... will see if this is a common gap...or breakaway ...
More...

Great comment, I'm thinking Breakaway at the way price action reversed so strongly at resistance and we are at what appears to be the tail-end of the downtrend.

We have different thread readers at different levels, and I don't want them to even think about taking counter-trend trades (at least, not with real money) until they get used to identifying a trend (based on my criteria, or theirs, or anyone elses, but there must be a defined way of identifying trend before you can do anything else).

Thanks for your post.

Jimmy
 
Short @ 83, this is against big momentum, but we are already up 11 pts, it is around noon est and we are short term overbought.

Let's see if this R2 is good for two points.
 
Quote from DonKee:

Short @ 83, this is against big momentum, but we are already up 11 pts, it is around noon est and we are short term overbought.

Let's see if this R2 is good for two points.
More...

Sounds good, and though it's against the dominant trend, like you said, it should be good for 2pts.
***
I'll be coming back after lunch (1:30pm) looking for a second leg up.

Best,

JJ
 
Going to trail stop at this point to 2 ticks above previous 5 minute bar, which is 82.75 for now for a break-even trade after commissions.

I will still keep target at 2 pts.
 
Quote from JimmyJam:

Great comment, I'm thinking Breakaway at the way price action reversed so strongly at resistance and we are at what appears to be the tail-end of the downtrend.

We have different thread readers at different levels, and I don't want them to even think about taking counter-trend trades (at least, not with real money) until they get used to identifying a trend (based on my criteria, or theirs, or anyone elses, but there must be a defined way of identifying trend before you can do anything else).

Thanks for your post.

Jimmy
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I day-trade the SP since 1997, and I know exactly the risk of a counter trade technique

In fact I use stops...(always)

Usually, I scalp the market during the first hour, with a few contracts, then I take position for a daytrade with a tight stop.

The "Position Trade" is closely related to the daily trend. If the daily is down, I tend to sell strenght and viceversa.

At present the main trend is questionable....(200 Sma on SPX @1271.5, - 50 sma is flat - 20 sma up)

It can go either ways

Good luck with your trading style!
 
I post the pivots for the e's every morning for my traders...along with other data. The "self fulfilling" portion of the pivot points, based on the floor traders and the upstairs arb's, gives them about a 15% "weighting" in decision making for entries and exits. Along with prem/disc and all the other tape reading aspects.

If anyone cares to see this.

www.stocktrading.com/Tradinginfo.htm

Good luck with your journal...


Don
 
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