Monday, July 27, 2009

ES midpoint support update

Here's a two day chart of the ES, midpoint support is drawn as horizontal support line, shaded box represents today's trading sesson. Look how the ES hits and bounces off of support coming in @ 969. I was lucky enough to get in right at 969. Market struggling to keep prices at these levels however NYSE Tick remains positive so I am holding my position. As soon as I see a lower low on a five minute bar I may sell at market.
Now, even with this info if you saw the market sell off to that horizontal line would you go long? Well if you were listening to the news or perma bears out there probably not. Market is overextended yes so the risk reward may not be worth it to most. However as traders I believe we shouldn't be trading while thinking what may or may not happen 3 to six months from now, that's not a traders mentality that's an investors mentality. Again just my opinion.