Apr 5 2010
Two good trades worth 7 points.  The killer is should have punched out after the second because I more than made any goals for the day.  As it is, I shorted at the first OR resistance and was dead wrong.  I have a 5 point stop on this trade and am barley still in it.  If I get stopped out I will have turned a great day into a so so why did I even get up day.  Still that's the way it is.  Can't do anything about it at this point I will just have to ride it out one way or the other.  Have alerts set so will just go watch the food channel.  

UPDATE 9PM  I added the rest of my bullets almost at the top to my short position so was all in until just now at 1182.  We just went through 1180 and I unloaded half there so my bacon was saved.  I have this mornings profit booked and a stop trailing at 2 points.  Enough of this for today and likely tomorrow.  I'm off to bed they can do whatever at this point.  That stupid short was uncalled for and I had to baby sit this thing for nearly 12 hours now.  Totally unacceptable and I am just lucky to get out with the profits.. I could have just shut the computer down at 11AM and been just as well off without the grief.  Do we ever learn?

Snapshot just after 5AM EDT 4-5-10  

You can see on this 5 minute chart the pivot point (magenta line) is a magnet.  The London open which occurs on my chart at 3AM produces volatility from the large red candle dropping 2 points in 5 minutes.  The Bottom indicator is one a friend coded and visually depicts how volatile the market is at any given point.  It basically uses Wells Wilder's ATR (average true range) but presents it as a percentage move of averages prices.  This is set for 14 periods for the average of the ATR and price.  What this indicator can do for you is help adjust position size.  If the volatility is twice the normal for instance you can cut you position size by 1/2 and still participate in the market trading without increasing risk during periods of volatility. Credit is due my friend CJTrader for his market wisdom and this indicator.  I plan to get into risk management at some point but for now I will just say that position size is FAR more important than entry when trading. 

This chart from dshort.com depicts my current thoughts on where we are in this market which is;  We are still in an bear market. The 1252 level represents about the 61.8% re-tracement from the all time high to the March 09 Low.  Reaching the area colored green may indicate the end one way or the other.  We could continue the miraculous rise or what may be likely is one hell of a failure near this point.  This market is strictly moving per government intervention IMHO.  How long can it go on?  Indefinite, is my answer.  We are witnessing truly historic times and I for one don't want to miss a minute of it.  This is unlike anything ever seen in the markets so most of the learned behavior traders have applied may not work in this market.  I know many perma-bears who have been shorting and losing their ass because they refuse to remain flexible.  I don't like holding anything more than a couple days right now and start each day unbiased in either direction, letting the market tell me which way to go.    

                              Click on chart for expanded view