Today's Trading Recap: 10/16/09

HOW OUR DAY WENT:

We ended with a good day. After the
lower open, the market bounced but the move fizzled at
1086 on the ES and dropped hard to just over the 1077.75-
1076.50 support. A bounce from there stopped and reversed
from the updated resistance at 1082.50-1083.00, and then
dropped back to 1077.50 (support). After chopping between
support and resistance for several hours, the ES broke out
of the range and sprinted higher. A little more than 10
minutes before reaching the 1087.00 high, an Instant
Message was sent to the group stating:

(Oct 16-13:28) mike: if 1 more pop towards 1086.50-1087.50
ideal short w/ tight stop

The ES popped up to 1087.00 and it set up a 4.50 point
drop to 1082.50 support. Before getting there I helped
with the exit, writing:

(Oct 16-14:09) mike: lock in partial profit 1083 or
better here, trail the rest

To end the day, members were told the market was topping
and followed that "tirade" by telling them:

(Oct 16-15:38) mike: 1088.00-1088.50 resistance

The ES then rallied back to 1088.25, then dropped 7.50
points to 1080.75 by the close.

Good Trading,
Mike Reed
TradeStalker.com