ES Retracement Likely - March 8th 2008 10:50 PM CST
I’ve gone short the /ES in my personal account for an overnight scalp. I’m heading off to bed in a few minutes here and figured that I’d post my thoughts on why I’m in this trade. The /ES has continued to collapse after recent upticks on a short time period. Based on the run-up from at the close on Friday, I think this is a great short opportunity. You can seem the chart to the right.
This seems to be a pretty straight forward trade. I’m using an OCO order with trade triggers to stop out above the highs from Friday afternoon and a I’m using a +2.5 point trailing stop that will trigger just above the 50% retracement to get out. If we continue to slide down after hours, the trailing stop should be wide enough to capture a bit of wiggle.
That’s it for the night. I’m not going to get into this scalp on the papermoney account, I haven’t decided yet if I’ll be doing much short term futures trading in that account.
