The first trading day of the week is always hard, it’s like coming back to the gym after a week off. I’m starting today out by review the last few entries here. What I’m reminding myself of is:

  1. I don’t want to take multiple trades at a time.
  2. I want to consider where the stop loss should be that would confirm the trade wrong not just what would be within my loss limit.
  3. As always, be patient.

It doesn’t look like there is any significant economic new coming out today that could cause the markets to be choppy or move for odd reasons. I am curious what caused the ES to dump at the open last night, so I’m going to dig into that a bit.

Like I expected it looks to be more coronavirus news causing the changes. So far most of the market has been surprised at how the ES has continued hitting all time highs in the wake of the severe economic impact this virus is having in China and now Japan. This is something that keeps in my mind.

5:26 am The markets look like the are leveling off from the dump last night. We’ve seen a very slight bounce off of 3361.25 on the MES and MGC is holding just above a resistance band. I’m currently looking for a short on the MES between 3367.5 and 3370.

5:34 am I entered a short on MES @ 3368.75 with a stop @ 3369.75. There was a hige spike on volume across the board, I’m not sure what’s driving it but it pushed MES into a good entry level.

5:35 am I moved my stop to 3368.25, the large volume has me concerned in a possible shift of direction and I want to move this to breakeven (after commissions).

5:42 am My stop was filled. I have a real urge to check my P&L, even though I know it’s rougly greater than $0 and less than $1. I’m going to avoid it.

5:43 am The markets are either doing a strong pull back on their trend or reversing for the day. MGC is dropping and MES is rising, we will see what MES does around 3370.

5:59 am We’ve now seen one bounce off 3370, I’m waiting to see if it will go back up and try it again. I missed the entry last time it hit.

6:03 am We are about 4 points below 3370, turns out that was a decent short entry, bummer I missed it.

6:09 am I’m starting to get bored and wonder if markets are changing directions. I’m also starting to focus on some other projects, so I’m considering calling it for the trading day today.

6:17 am I entered a short on the MES @ 3367, with a stop @ 3368. The market was moving in a way that I expected it to push down, I might have mis-read the market flow though.

6:19 am My stop was filled. I think that trade was mostly out of boredom, so I am going to officially call it for the day.

P&L