Premarket: I was unable to trade yesterday and of course it's the cleanest trending green day 60 pt move of the year. We destroyed the downtrending channel we were in. Going into open we are opening above VWAP and above the 0pivot. The 0pivot is at 4135.58, -1pivot at 4103.17, and +1pivot at 4190.42. We have a level of interest above at 4150, then at 4166, with the top of the CPI push at 4177.75 and then the most recent high on 4/19 at 4183.5. On the downside, we have levels of interest at 4132.5 and 4105 which are near the pivot points. If we hold above VWAP and find some buying pressure I'd want to take a long at around 4147 for the break of the consolidation were wre in for a move to 4166. If we break below VWAP and hold below, then I will look for a short through the 4140.75 level and down to the 0pivot at 4135.58.
Missed Trade: at 9:42 I wanted to buy the pullback to the 4150 level for a larger move up to 4166 but the QQQ looked weak and I hesitated and missed the chance to buy in at a good price. The ADD had a consistent green uptrend as well. This consistently moved green until my target. This was a clear cut setup that I failed to take because I overthought it.
Trade Taken: This was not a great trade. This was a trend reversal that I jumped in because I had been thinking too much and not jumping into trades appropriately. On the 5 minute chart we had found support at the 4166 level I indicated earlier and went back to high of day, where we found sellers and could not push higher. This corresponded with the 4177.75 level I had identified as a level of interest in the premarket. Once we found strong sellers I jumped into this trade and made around 10 pts on the trade, leaving some money on the table. When I was in the trade I was looking to take it at around VWAP, but I took it before hand, with my first 2 contracts being shed way too early. Overall, while I did win this trade, I'm not very pleased with it. I broke my #1 rule of only trading in the direction of VWAP (I took a short above VWAP) so that I can take trend continuations. This was a clear trend reversal trade.
