To say that today was rough is an understatement. I got underwater very early in the session and I just couldn’t get out of my own way. It happens, if you trade on a regular basis, it will happen to you. So I stepped away for a little while, to clear my head and I was able to claw my way back to profitability.
The image above shows my cumulative net profit curve throughout the day. There were very few things I did right today and so many things I did wrong today. The best thing I can do with a day like today is put it behind me. I went off plan, I know I went off plan, I’m lucky to have escaped it undamaged.
At the time I am writing this, the trade war with China is being escalated to the next level. The market has responded by selling off and slowly pulling back. I bring this up only because the added volatility has to be taken into account as I plan for tomorrows trading day.
The image below has the value area levels from today’s session for both TPO and Volume profile. In addition, Today’s Settlement is at 7301.50. As I write this, price is trading below today’s trading range and if that continues then the overnight inventory will be net short. Typically when I see overnight inventory lopsided in one direction, I look for a counter auction to correct that. If the market does not correct the imbalance, that usually means there is either strength or weakness (depending on where the imbalance is – long or short respectively).
If you are reading my posts for the very first time, please understand, the purpose of my trade plan is not to pin point where I’m going to enter a trade tomorrow. The purpose of my trade plan is to identify levels where I can expect to see price react. I will then make a trade decision based on that reaction.
Tomorrow should be in interesting day. On the economic calendar, the only high impact news is PPI to be released at 8:30 am ET. There is always the chance that the President tweets will move the market as well. I highly recommend you follow the President’s personal and official twitter feeds, jus so that you are aware of what is being said and how the market reacts to it.
That is all for me today. Until tomorrow, trade well!