Today's Trading Recap: 10/12/09

HOW OUR DAY WENT:

We were looking to short early strength
on Monday, and the first intraday update was all that was
really needed as it stated:

"The gap and go open took the ES to the 1075.75-1076.50
zone 30 minutes into trading, and that area was rejected.
If the 1073 level isn't held, the third gap in 6 trading
days will likely fill at 1068.50 on the ES."

A high was made at 1076.25 and then the move stalled out.
When the updated support at 1073.50 was broken, the ES
went right to 1068.00 level before bouncing. Members were
Instant messaged just after 3pm:

(Oct 12-15:08) mike: a failure to clear 1072.50 is a negative. must clear and hold that or mkt still vulnerable.
1065 now a key/ pivital support
(Oct 12-15:34) mike: that 72.50 should be it for the bounce

The ES reached 1072.50, exactly, then stalled and dropped
to 1070.00 (we covered at 1070.75 per another I.M.) where
it was able to hold and bounce back to 1072.75 before the
reversing again as stocks closed. A good day with profits
of 7 points and 1.50 points on 2 low risk shorting
opportunities.

Good Trading,
Mike Reed
TradeStalker.com