Monday
1. Contract rollover was this week so I was a little lost in terms of previous LH or LL to target but this HOD actually correlated perfectly to a high we had made about 2 weeks ago thus satisfying requirement 1 of "Liquidity Hit"
2. Internals started trending down at 9:36 on VOLD and 9:44 on ADD. The ES dropped much faster than that though and was already down nearly 10 points before the internals were confirmed to be trending down. This wouldve been very hard to short because I wouldve had to chase it in some aspect. I think this is quite telling that the days before CPI are very tricky and conveluted. Its very easy to be very wrong and the market just flips out of nowhere.
Tuesday (day before CPI)
1. Swiped PDL
2. Internals trending up and holding OP all day.
NO TRADE
Reasons:
1. Internals trending up at open but we flush down through the LOD and head for PDL. This means low probability environment
2. Day before CPI
3. Volatility is weak anyway so fighting for pennies is not worth it
Wednesday (cpi day)
1. Low swiped out on CPI candle then we move higher and use the previous day lower highs and choppy price action as levels to hit liquidity.
2. At the open you can see the ADD Weight and VOLD all were trending down quite heavily. This gave me a lot of confidence that we were going to move lower. For that reason I sized up to 2ES contracts
3. Targeting the CPI low wouldve been wayyy too aggressive because the VOLD stopped decreasing at -2 and to get a true massive reversal we should be moving down the entire day
- This is how I traded it. I for short early on and stopped out fast for a scratch. I got short again at the highs after the open and got stopped out after we spiked out the high and I was so worried that I Was going to be the idiot who stopped out before the big move. I got back in and added targeting that previous higher low which worked very nicely and I made like $800 on this one trade alone. This is how trading should be done but instead of me stopping out and losing $100 on the second trade I shouldve just added again because with ADD dropping that heavily and VOLD going down this was going to go lower.
Thursday
1. Swiped high from monday
2. VOLD downtrend at 9:40 ADD downtrend at 9:46-9:48 Weight choppy all morning but downtrend at 9:48
- This is a choppy day where trading is difficult to the short side because we were above PDH and using it as support to continue the move higher.
- I got 2 shorts in to equal about 6 points in profits but these trades were both sketchy and hard to take. You had to be a super scalper to make money going short in the open. Super super choppy.
Friday
1. LH at the HOD in premarket so we would go down. We also hit a ton of SSL on the way down
2. Internals were trending up from the open up until about 10:15. Something that must be told here is the fact that the Weight was dropping HUGE when the ADD was up a little bit. If Weight is down that much I need to be very cautious. On big red trending day like this one its very important to find what is the driver and if its the weight then stay away because the market will follow it
