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MortiES' EOD ~ Two Elliott Scenario's
July 1st, 2009at 8:07 pm
As I said in the pre-market comment, we got another chance to short ES today. The only problem was that we could probably have watched our account grow faster in a savings account with that short. I’ll start of with an apology for the clutter on the chart, but I am trying to visually demonstrate two possible outcomes of the market action in the short term. I am really not as interested in whether ES will hit 1,000 as I am in how to trade tonight and tomorrow. I’m also not interested in EW except as it gives me an edge in trading. You’ll notice that I only partially labeled the recent corrective wave, because I am not an academician, but a trader. I’ve seen the pattern (megaphone or expanding triangle) that I labeled on the chart counted different ways, but this works for me. I’ve also seen this pattern be both bullish and bearish, but I am guessing bearish from what I need here to support my opinion and based on experience. There are two scenarios on the chart. One is in red and one is in blue (my favorite opinion). I suggest you just look at one color at a time. I was even getting confused.
Categories: Markets
rockybalboaa: Sorry to take so long to see your question. I use MBTrading. They are really fast. I’m sure there are others as good. If by platform you mean which software, it’s eSignal’s Advanced GET working off my little 17″ Mac Book Pro as I travel my offices. When you specialize in ES, you don’t need 6 screens in front of you.
matso: my training days were over probably before you were born. Good luck in med school!
Thanks Mortie…
I like your trading style. I guess this way you minimize risk, and get to lock ur profits. I end up losing more often than winning by holding overnight. Case in point Monday, when I bought puts at SPY 930, I saw them rise 50% when SPY sold off to about 913, but I didn’t exit. And yesterday morning when SPY went back up to 932, my stop loss hit at SPY930, and I got out with a loss.
I think I’ll start trading ES futures instead of SPY puts. Which trading platform/brokerage do you use for trading ES? TDAmeritrade I believe doesn’t allow ES trading?
Bought back all my shorts here at ES916.75. Some from yesterday at ES916.50 and some from today at ES926.5. Still think we have the Wave 5 to go on this Wave 1 down.
MACT: gum gardener
Rocky: I went flat before getting on the road for my commute. My trading style is to take partial profits at obvious places where the market will correct. If I’m in a W3, I will get out at what I consider the end of that wave and not sit around frustrated watching W4 go against my profit. When I’m bored and want some fun I will reenter the market during the W4 and using a 1 min chart scalp the waves. Not recommended. It’s just play. It is the best way to understand the typical action in a W4. I am basically a day trader except for unusual circumstances and am out by the end of the day. Regarding a trade that is going in my favor, I always use a trailing stop usually 1 tick beyond the previous swing of a 1 or 3 min. chart. I usually don’t enter a trade in phases, but I do take profits that way in a good move. My entries are all or nothing and I don’t like to risk more than 3 points in a trade. As soon as I enter a trade, I either place a stop market order or a TTO order with a stop and a profit target if I can’t monitor the trade.
Hi Mortie,
Excellent charts. Great call once again this morning with the ES short at 927. I was curious to know if you covered your ES short from 927 at ES 908 yesterday, when you reshorted today. Also, did you cover your ES short at EOD, waiting for market to show’s it’s hand based on the charts, so did u leave your short open.
Just trying to understand your trading style and whether you lockin profits on a daily basis, despite your view that you expect further downside tomorrow.
Appreciate the updates
Thanks
Looks good, I’m voting (with my bearish spreads) on the blue arrow.
Hi Mortie,
Excellent charts and perfect timing with your short call at ES 927. U mentioned that you went short at ES-927. Just curious to know if you are still short or covered at EOD.
Trying to understand your trading style, as to whether you lock in profits daily, especially since you had gone short yesterday at 927, but I am not sure if you covered that short at ES908, n then reshorted today at ES927 again.
Others like Atilla who go short, seem to stay short until stopped out.
Appreciate the updates.