The ES sold down close to near term support in the pre-market, and then traded as low as the 1013.25 level in the opening 30 minutes of the cash session. After the ES traded to the 1013.25 level, price cycled in a small range near the days lows. We ended this somewhat uneventful day with a minor SHORT covering rally back to the 1020’s pricing levels. Today the market had several perfect opportunities to breakthrough this near term support, and then drive the held accumulated SHORT inventory from the past weeks well into the money.
Video 1
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=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[[T_F]]
Right out of the US cash session open we had a gift to be able to sell the 1038 area as resting held SHORT inventory showed no signs of covering. Actually, sellers used the excellent price improvement opportunity to build their growing held SHORT position. So what did the market show us next, a sell-off down to a low of day 1022.00 touch. After 1022.00 was traded, the sellers called it a day for the most part as a grind up recovery off the days low followed into a 1027’s close before the weekend. It does look like the S&P500 Emini will attempt another test of near term support soon with a likely probability of additional downside range extension. Take a look at this chart/video and see what I am looking for as we trade into Monday;
http://www.charthub.com/images/2009/08/29/FulcrumTrader_F1_4.png
Video 1
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=ff18dff61d563cc6a5caabe94e688f4566027fb6e30a0f297cd7bb643c5f0a486ddef904b9880328f1e1a52f4fefd4cd68186d6d9e8d9a2f53c94f82856ddd5617321e33e41d4f52bda9dcdc83975f152e89b51547db2fac1e94c141d9338a44a634bded73b274c445ffc556022a1f3151ebb5c8952577e87db994e00c9411282ca6c32438c1dbc14677aa896cc7e5e935426e2c7635d3a9b9569a8364101f2abe8688b93e07d67c5b394b4c94eafd0b15a616ea9ebd94a3c6573b419021fc7c35390e4507530744beae67a82e579418e0b6d0830dc3f5a7eed0d0dc0593c6e3f51ec3d45e0ec20818dcae1e36e0258fef5aff150bd7b02dcff1e3e834a3b040ed8c275ae67e2bf655180129de4490a85bb5c27ff26612f3e08a1ca9bfcbb206c673ef898079fd10f9dc63771dfd85addda347166f6797a3673c2cacf1c0fd9e60b5f1d3ed2e1e2a291d7bf4503f1e90fb0af8cede522db8b418ffb2288eae15fa71e6af1ed27c3875fcb51ccbb308b08c7c60260912a1ce944efd36dea8860b75313b05699921a681a4adc0ed371da2c717c01ade8933d4c41b75edc02a910ea037579a755a4372f55266df9546ee5f1c62cc095684ce91d243cec1deb4393aa9940df65ae2d0426a734c018a3c4f018a3d80[[T_F]]
In the early morning just before the US cash session open, the sellers took control of the order flow to start a price run to the 1017.75 to 1016.00 breakout zone. Price traded through the breakout zone for some minimal range extension to a low in the ES of 1014.75. Now that price had tested near term support, it was all strong program trading into the close fueled by very active equities BUY programs.
Video 1
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=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[[T_F]]
The after hours session last night was uneventful, and after an initial rally out of the US cash session the rest of the trade day was also uneventful. We traded with the current upper range of price with no retest of the current high at 1038.00 level. The ES was still unable to test the breakout zone today of the 1017.75 to 1016.00 levels. With the market trading in a congested range most of the day, I would not at all be surprised to see some range extension tomorrow so here is my call;
80% probability we range extend below the 1016.00 level and 20% we range extend above the 1038.00 level…..this is my call and I will hang my hat on it! 
Video 1
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=ff18dff61d563cc6a5caabe94e688f4566027fb6e30a0f297cd7bb643c5f0a486ddef904b9880328f1e1a52f4fefd4cd68186d6d9e8d9a2f53c94f82856ddd5617321e33e41d4f52bda9dcdc83975f152e89b51547db2fac1e94c141d9338a44a634bded73b274c445ffc556022a1f3151ebb5c8952577e87db994e00c9411282ca6c32438c1dbc14677aa896cc7e5e935426e2c7635d3a9b9569a8364101f2abe8688b93e07d67c5b394b4c94eafd0b15a616ea9ebd94a3c6573b419021fc7c35390e4507530744beae67a82e579418e0b6d0830dc3f5a7eed0d0dc0593c6e3f51ec3d45e0ec20818dcae1e36e0258fef5aff150bd7b02dcff1e3e834a3b040ed8c275ae67e2bf655180129de4490a85bb5c27ff26612f3e08a1ca9bfcbb206c673ef898079fd10f9dc63771dfd85addda347166f6797a3673c2cacf1c0fd9e60b5f1d3ed2e1e2a291d7bf4503f1e90fb0af8cede522db8b418ffb2288eae15fa71e6af1ed27c3875fcb51ccbb308b08c7c60260912a1ce944efd36dea8860b75313b05699921a681a4adc0ed371da2c717c01ade8933d4c41b75edc02a910ea037579a755a4372f55266df9546ee5f1c62cc095684ce91d243cec1deb4393aa9940df65ae2d0426a734c018a3c4f018a3d80[[T_F]]
Losing in trading can bring out other-worldly anger and frustration. Anyone who has taken a huge loss can identify in some small way, if only for a moment, with the despairing jumpers of the 1929 crash. All the cliches come into stark focus as you stare blankly at your P&L: pride before the fall, putting all your eggs in one basket, look before you leap, shoulda-coulda-woulda, etc. Losses have a way of humbling you and pointing you to self-reflection, critical inspection or just plain dejection.
They also can push some of us to a scotch bottle, fine cigar, and great music; especially music made by people who have earned the songs they have written; those blues musicians whose pain drips from every note. You can tell they’ve been there at the bottom of the barrel and climbed back up to talk about it. They have a way of reaching out and connecting with us, reassuring us there is life beyond ourselves and our problems.
We sometimes need that assurance we’re not alone in our experience. That there’s not something fundamentally wrong with us. That our losses in trading represent, in microcosm, the inescapable human condition: a denial of hopes, a thwarting of desires, and a final end, at least on the physical plane of this planet.
Even the wise trader (who if you are not, you should become) who has a sound money management plan in place so he won’t be destroyed by any one event, still has the sting of not getting every trade just right or having events overtake them outside of their control.
That being said, I was digging around in an old trading computer today and re-discovered a musical gem that brought a smile to my face so I posted it for you below. It’s short, only a minute long. It’s not BB King, or Robert Johnson, or Stevie Ray Vaughn, but it captures to zeitgeist of the modern trader. It’s dedicated to anyone who’s ever been underwater, far from the shore.:-)
Trader’s Blues – by Mike Shannon.
Cheers!
Fulcrum Focus
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=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[[T_F]]
