8/27/2009 1 pm update

• the order to sell NQU09 limit 1626.50 was filled at 1626.50 for a 4.25 point loss/contract from the average price of 1630.75/contract...
• for my current discretionary swing trading style, i am experimenting with not using firm stops, but rather weighing my current exposure against my shorter and longer term views...longer term, i am very bullish on the NQ...shorter term, there are some signs of topping action and we are heading into the september/october period which can be very volatile...so with this set of short and long term views, i still want to have some long side exposure, but not as much if i thought that on both a short and long term basis the NQ would head higher...i will attempt to work my average price down during selloff's and then look to add more exposure if i believe the NQ is ready to reverse back up and make new swing highs...prior to today, i was long 1 contract at 1644, now i am long 1 contract at 1630.75...this 13.25 point difference only cost me 4.25 points because of the way that i worked my second entry and its subsequent exit...
• the 1626.50 sell level was selected because: 1) it is just below the 1628 pivot that had been support for the past 4 days and is now resistance; 2) just below the declining 20 ma on the 15M chart; 3) a bit below the lower red sell line on the ATR Volatiltiy Band chart...
• as the NQ began to move from the low 1620's to the mid 1620's i did start to feel some anxiety that my limit order was a bit too high and wouldn't fill...i thought to myself that i should let the order sit and if the order did not fill within a reasonable period of time, then i would lower it a bit...the order did fill within that reasonable period of time...
• i am proud of myself: even though i felt some anxiety, i did not immediately change my order, but rather i came up with a plan if the order did not fill in a reasonable period of time...
• i did lower the second exit order from limit 1646.50 to 1646.00...
• i am currently long 1 contract at 1630.75 (theoretical)...
• i do want to add a second lot, but at what price? i will add if the NQ sells of some more, at limit 1603.50...
• this 1603.50 level is derived from the following: 1) just above the whole number 1600; 2) just above above the 1600 pivot from 8/19/2009; 3) just above the rising 200 ma on the 60M chart (not shown); 4) just above the lower buy band (dark green line) on the ATR Volatility chart...
• but what if the NQ continues to rally? then, i will wait to see how the charts setup...this waiting and not knowing is a bit new for me...i need to listen to what the NQ is telling me...right now, as far as i am concerned, the NQ is not saying a thing to me about where to add if the strength continues through lunch and into the afternoon...i will be watching and waiting...
• in the mean time, i will be rebuilding the 'SB IDX' systemic swing model...

Disclosure: Long NQU09.

***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...***