What Strong Markets Often Don’t Provide…
Both major
markets are following through on yesterday’s gains,
while providing some nice high-probability two-way trades in the morning
session. As we would normally expect after a significant trend day, the market
has been in an early chop/scalp mode with 2 to 4 point ES bounce plays working
well off one-minute divergence and trend triggers, with the early bonus being a
solid 13-minute ES pullback to 13-minute support which was tradable from both
sides.
Given the extent of the recent hourly chart moonshot, my low-risk preference for
long re-entries would be on a deeper pullback toward 60-minute support, combined
— assuming the strength angle remains — with a lesser timeframe reversal
trigger. Yet as we know, strong markets often don’t provide
“preferred” entry opportunities, in such cases rewarding only those
with strong and immediate conviction as was the case throughout much of
yesterday. In any event, continue to use any weak divergences on climbs to
consider scaling out of longs, which may also provide a foundation for a
tradable retracement on the short side. Markets of course don’t go straight up,
nor do they go straight down, yet can be murderous for overeager pioneers.
Lastly, my thanks to those who were willing to put up with my constant babbling
last week during the “Virtual Pit” experience. Based on recent
feedback from the March attendees, the eardrum effect should only be temporary.
I also appreciated your candid feedback and have summarized your responses
below, which will help us continue to refine the sessions as we move forward.
Thanks again, and best wishes going forward.
May 19-23 “Virtual
Pit” Participant Ratings 1-5 (5 = Top Notch; 1 = Pathetic)
| Pre-Seminar Planning |
4.0 |
| Seminar Content |
4.8 |
| Technical Platforms |
4.0 |
| Usefulness of Live Trading |
5.0 |
| Usefulness of Evening Roundtables |
4.5 |
| Host Market/Trading Knowledge |
4.8 |
| Host Market Sense & Trading Skill |
4.5 |
| Host Integrity | 5.0 |
| Overall | 4.6 |
Comments
Live trading experience
with your methods being applied reinforces your strategies and shows how
successful one can be. — E.L.
Excellent week. Most importantly, I learned a lot about myself through you as a
trader. Thank you. — J.E.
I felt the seminar was great. Don brought out many of the true issues facing
traders and the many different aspects required to be successful at trading. To
me, I learned more than I could write about here. Also, my personal feelings
are that Don is a credit to the industry and wish I had contacted him much
earlier in my trading career. — J.B.
Don, the seminar met my expectations: Learning from and observing real time
trading; having my questions answered about indicators and especially how to
apply them; Getting clear recaps of your trades and the rationale behind them;
Getting insight into how traders think, i.e., market psychology that moves the
markets; Increasing my ability and conviction to ACT on my own observations by
actively being in the market with positions (that alone was well worth it!);
Increasing my own confidence level in continuing to develop my own style;
Hearing about the reality of trading, not the hype, both on a personal and
business level. I appreciated your candid approach re: trading and your
own background. — L.B.
ES
(S&P)Â Â Â Â Â Â Â Â Â Wednesday
May 28, 2003 11:30 A.M. ETÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â
NQ (Nasdaq)
Good Trading,
Don