I missed a hell of a lot of the action today.. the market had already fallen loads and there were just a mere few scraps to be traded with.

Today was a short day so I was looking for a chance to short the S&P and the opportunity came when the market bounced off the Fibonacci level in the 5 minutes. This also coincided with the stochastics cross and I went short. I didn’t get the best price and also with the spreadbetting spreads my price wasn’t great. However, I rode it down to around 1380 where I closed… it was at this stage that the stochastics were looking to head up.. however, the MACD was also looking to cross so it could have meant a potential move lower to 1378. If unsure, best to take some profit so I did but made a mere 1 point!

Indeed the stochastics turned up and the price action shot up. There was also about 30 - 40 minutes to go and when the markets go as low as this, there comes a point where the day traders will close their trades to take profits and this should move the price higher. I felt that this was the time but I waited for a move above the previous swing high at 1383. I went long at this point and took 1 point again as I was seeing the candlestick top pattern… I also wanted out as close was so near… however, I expect more day traders to close their trades.

Anyway, here is my chart as below.. as I write there are 15 minutes to go and the price action is at 1386..  oh well!

Tags: day trade, daytrading, emini, es, foreign exchange, forex, makemesomemoney, position trading, s&p, Spreadbetting, standard and poor, stochastics, technical analysis, Trading, trading system