May 19, 2006: Cnsld

I decided to go against my plan and trade today - mainly currencies & metals. There was no interest on my part to trade indices since I don't trade Friday afternoons and there weren't any setups I saw the night before.

Today the market consolidated and as mentioned in last blog entry I was looking for the Dow to dip and retrace to the 'Bull Zone'. This is what happened today as highlighted on the Dow chart and now it's time for the market to show whether it'll be resistance or will go penetrate and stay above it. Looking at today's breadth it clearly chopped around the zone and there were no setups on YM nor ER cuz both were out of sync w/breadth in relation to ma.

Monday mornings are the toughest so I'd wait till the afternoon part of the session and see where the market is before trading. If long then I'd like to see all the indices including BKX above their ma. There's a chance for a gap down or chop in the morning with a strong followthru to the upside in the afternoon.


This chart is what spoilt my planned long weekend :P.. I kept thinking about the Euro setup that I decided to show up just to trade it. As previously mentioned I was expecting the RS on the H&S to materialize after retracing to upside of the longer-term TL. That's what took place and I entered on break of the RS TL and ma (50&70ma)..don't they look like anaconda?? lolll.... The trade setup is highlighted in the chart below..Ditto for the JP which broke the bear flag on 120min as expected but didn't trade it.

As for Gold I was expecting a bounce up but that didn't happen and never reached top of triangle. It breached the 675 level I talked about and that was a trade entered as well. I missed the notes (ZN) trade but that wasn't my focus. The BP moves better in terms of profit range and shall look at it.

Note: I've changed the commodities layout and added NatGas and Crude which I shall be trading in the near future. Grains will have to take a backseat for now since they're not electronically traded till end of summer.


This is the euro setup I was looking at the day before and the RS setup highlighted in Red. One can see that the profit target was the neckline. Didn't catch the whole move but walked away with total of 140 pips on 2 contracts which was my best trade ever on Euro! :)

I will be off next few days since I deserve a break.