I've noticed that the ES tends to trade in a narrow range in after hours, presumably due to lack of volume. In my opinion support/resistance lines on the ES in after hours have seemed to be pretty reliable for a technical trade. Since my overall market bias is down and I'm not afraid of a sustained market bounce, I'm going to short ES here and look to scalp a few points before morning, will put a GTC in at 1050. If it breaks resistance above I will not close out for a loss but rather pucker up and keep my GTC on.
Many of you have been reading this blog may have noticed that my blogging frequency has increased over the past few weeks as I got short the market. As you can imagine I am down money since getting short the market, this is the time when most people pull away from posting. But my goal is to stay active and involved and show you that trading is not always rainbows and butterflies. It is times like these that the things I have been sharing over the past couple of weeks are so important. You need to trade small relative to your account. I have a decent short position in the market and my portfolios are set up to make some awesome returns if we finally turn lower. But something I would like to point out is that my account is 70% Cash. I learned a long time ago how important it is to live by the rules you preach. Because of my discipline I am able to continue to hold my positions, I have time and capital on my side. I can't stress enough how important it is not to get to big....


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