8/21/2009 11 am update

NQ discretionary swing trading:

• bought some NQU09 during the overnight session at 1608.50 and sold it into the top of the pre-open range at 1622.75...
• booked + 14.25 NQ points/contract...
• NQ showing relative weakness (rw) compared to YM, ES, EMD, TF...
• i missed getting back in during the post open sell off...NQU09 traded down to 1614.25 and my order was limit 1613.50...
• market ramps up after the 10 am housing data...
• semi's lagging (SMH)...
• ES breaking above its recent range, and showing relative strength...
• took NQ a while longer to trade above the top of the month long base (1632)...
• all major indices looking a bit extended and trading to or just above the recent month long range...most indices already moving to the extremes of their expected daily range...of course they could beyond their expected range, but it makes sense to me that they may stall for a bit in the current areas...
• option expiration makes things a bit tricky...
• i am not buying the NQ breakout right now...i am bidding for it at limit 1622.50 though...

VCM daytrading:

• if i am going to scalp opening gaps, then i need to have a fixed dollar loss amount, perhaps 1 R unit...
• today's opening gap up in CSTR that i traded to the long side, did nothing but sell off from the opening tick...
• instead of limiting to my risk to 1 R unit, i just thought i could work the position back to break even...
• after CSTR dropped below the breakout level (32.40 ish) and then below the whole number 32.00 i sold my position...this cost me 5 R's....way to much...
• if i am going to scalp a position, it has to be with a max stop of 1 R...if i don't do this, the numerous small gains are going to be negated by the periodic large loss, like today and like numerous times in the past....
• good lecture this am by oliver...discussion on opening gaps and on optimal self-talk...this morning, i did not follow his opening gap concepts...i got crushed...hmmmm, maybe i should be paying more attention to what he is talking about!

FAS longer term discretionary swing trade:

• the IRA lot i bought on 8/11 at 66.65 i sold this am into resistance at 75.07...
• two IRA lots to be purchased at limit: 68.35, 61.50...
• the current two IRA lots to be sold at limit: 84, 94
• 6 more custodial account lots to be sold at limit: 86, 88, 96, 98, 106, 108...

Disclosure: Long FAS.
***remember this is an illustration of what i am trading and my thinking...my trading plan may change without notice...this is not a recommendation for you or anyone else, to buy or sell this or any other security...***