Experiment with Posting Real-Time Charts

I'm going to experiment with posting real-time charts today... I might end up pulling this entry if it gets unwieldy though.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 10:43 AM

Short below 985.25, P-Stop above 987.75. Although trend is up on the daily, the hourly chart has been trending lower the last couple of days. Shorting in the direction of the hourly trend off the 10-minute.

That gap up open into the 20 EMA gave a nice bar to execute under, with a very tight stop possible.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 11:00 AM

The candlevolume chart is a great thing... combining volume and price gives one a good idea about which bars are significant, and which are less so.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 11:10 AM

Price reversed a bit at 984.50 at the 20 EMA, but we have an inside day shaping up here, probably lots of chop back and forth.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 11:20 AM

You could move your stop to breakeven or choose to continue to risk a couple of points, give it some space in the chop.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 11:30 AM

It's coiling a bit tighter, looking to make a move to pick off all the stops that have been placed around the range so far.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 11:40 AM

Making the move up.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 12 noon

Still anticipating the push up.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 12:10 PM

Some people prefer bar charts, but I like candlesticks. It's a generational thing in part, everyone I know under age 35 uses candlesticks, everyone over 35 uses bar charts. Old dogs, new tricks, etc.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 12:30 PM

A very nice lunch time push up to grab all those breakeven stops from the morning shorts... now to grab the rest of us at the morning high. ;-) Folks looking to add to their short will enter below these up bars if it reverses.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 12:40 PM

Poked all the way to 986.75 ... another short below this 985.25 possible... risking 2 points or so. Or just sit on the original position (if you weren't stopped out at b/e).

E-Mini S&P 500 Futures, 10-minute Chart, approx. 12:50 PM

Still acting coy about making the attempt on the morning high... if it gets through that it might go for 991. I'm still thinking in terms of adding short if it moves below 985.25, which it hasn't yet.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:00 PM

Well it's reaching hard for 987 and higher here at the end of lunch hour. The short entry moves up to below 987.75, which it may reach down under in order to pick up some shorts giving it the fuel to move up.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:10 PM

Any additional short put on at 985.50 should have a P-stop at 987 and change. Those stops above will act as additional fuel for the fire to reach the morning highs of course, but that's the way the game is played.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:20 PM

OK it dropped down through making sure plenty of shorts are on board... now to test their mettle... at 987 quite a few weaklings will scram.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:30 PM

Trading in congestion is a pain, but that's what you face about 80% of the time. You can make good money a few days a month when you get on the right side of a trend day... the rest of the time you're playing defense, trying to keep your losses small, like today. Trading is interesting, but it ain't glamorous.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:40 PM

One disadvantage to being in London is that my dinner time is approaching now, so I'm going to have to cut this experiment short to meet a lovely lady (yes, the wife) for some food. It beats trading the US market from Hongkong though. Working the "late shift" (8 PM to 5 AM), which I did when we lived there, is terribly unhealthy and I wouldn't wish it on my worst enemy.

E-Mini S&P 500 Futures, 10-minute Chart, approx. 1:50 PM

So I would either scratch out the positions here or set a standing buy-cover-stop at 987ish to risk a couple of points. Many times while in Hongkong I would pack it in early after placing a standing stop order, and wake up the next morning to a surprise (often pleasant, sometimes not!).

The problem when I did that was that my dreams were filled with positions moving violently against me: visions of Greenspan making surprise rate cuts, fat market makers giggling with glee, stops blown through to the tune of tens of thousands of dollars in losses, whatever... so I preferred not to leave stuff open.

Have a good weekend, guys.

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