Tomorrow will be interesting after the return of the bulls last week. Futures are slightly down at 10pm tonight. Maybe we’ll see a gap down with a slight recovery for a sideways day. Lots of traders are looking to short the financial sector, and we are in slightly overbought territory so a pull back is likely coming. Whether it will be a light drop or to new lows, and when – are the questions. I think we will digest the gains a little before we go down again.
I’ll be paper trading on Monday. While I have many goals and rules that I want to follow, here are main ones tomorrow:
- Over-trading – I’m waiting 10 minutes before each trade using an egg timer. I tend to make back to back trades for two reasons: 1) Right after a significant loss, I want to make it up so I jump in without thinking. 2) When I think a rally or drop is coming, and I don’t want to miss out, so I enter with out signals. Waiting slows me down. Having a cap on the number of trades I make daily really isn’t good because the strategy I’m using depends on entering every good set-up I see and cutting my losers. The problem with my over-trading is that I make trades that have NO entry signals, but the 10 minute pauses me just enough.
- Market Structure: I want to determine as early as possible if we are in a range bound / channel day or if we are in a trending market. See my post from yesterday for details on this.
Here are the five stocks on my initial watch list tomorrow – these are day rangers or short candidates. I will add three pre-market movers in the morning.
Tick | Last | %Chg | Vol | ADR | Open | High | Low |
KEY | 7.7o | -3.27 | 15 Mil | 0.95 | 8.1 | 9.05 | 7.15 |
AES | 6.14 | 1.49 | 9 Mil | 0.47 | 6.1 | 6.57 | 5.63 |
AGO | 4.78 | 21.94 | 1.5 Mil | 0.69 | 3.98 | 4.67 | 3.29 |
DIN | 8.77 | -0.45 | 426K | 1.22 | 8.84 | 10.06 | 7.62 |
UAUA | 6.07 | 8.59 | 8 Mil | 0.74 | 5.66 | 6.4 | 4.92 |