Two Day Update

by Larry Levin


In our normal updates we simply discuss the market moving events and leave our trading details out of it. Today, however, I would like to touch on the virtual trading roomâ?Ts (VTR) two-day accomplishments.

Friday's monthly job-loss event caused a few sharp moves in the market, first down then sharply higher. On this day the VTR calls netted +22.25 points on 19 trades: 13 winners and 6 losers. The first trade of the day was a fast loser, but that was followed by nine consecutive winners. The end of the day was quite choppy and in this time the VTR calls lost a little back to the market.

One of our star traders was down 20.00 points in the morning but staged a huge reversal as the market volatility increased. The swing from low to high was 110.00 points that netted him about +90.00 by the close, $4,500.

Today's market was slow overall; however, the early portion of the day was fairly active. The VTR calls netted +20.50 points on 12 trades: 10 winners, 1 loser, and 1 break even.

The VTR is using a good combination of algorithm trades, One Time Framing directions, old school support and resistance levels, but mostly our volume chart. Our volume chart shows the actual trades made in real time, buys or sells, on the bid or at the offer, with the exact size. In other words, we can see inside the bars.

One example that is emblematic of many of these trades would be watching the market drop to a support level while seeing the selling volume decrease. Of course this can accelerate at any time, so traders may wait a bit to put on a long trade. If the market turns up, that's good; but how good? It helps to see inside the chart, so when the VTR sees a huge buyer lifting the offer, they join him. This strong buying at a specific price after support has held (or resistance when selling) has recently led to many fast winners.



Previous Day's Trading Room Results:

Trade Date: 2/8/10

E-Mini S&P Trades*
(before fees and commissions):

1) OTF buy @ 10:40am at 1065.50 = +.50, +.75 & +1.25 (3 lot)

2) VA buy @ 1:36pm at 1061.50 = -1.50 (1 lot)

3) Algorithm positions (11)

4) Reading the Tape positions (8) combined Secret's, Algo, & Reading the Tape total +20.50



Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!