Emini Trading Blog

Posts Tagged ‘Bernanke’

Busy morning for our aggressive trader, Bob. On the other hand, our fearful trader J.R. is feeling frustrated, a little down after seeing two large moves and regrets missing “all those easy points”. The Existing Home Sales report was much better than forecast. This, along with Bernanke’s “growth in the near term” comment has spurred markets higher.

Our aggressive-inclined trader “Bob” has been busy. He took, of all things, a sell-side entry at the open near 1015.00. Feeling a bit flush from yesterday’s gains, he had a hunch Existing Sales would disappoint and liked selling at Monday’s high. So, he enters by selling five contracts! To give the trade space, he placed his stop two points above the high, at 1018.00. For a few minutes all seemed fine. He moved his stop to 1016, after price dropped to 1011. This minimized his risk to a loss of $250. Which traded shortly thereafter. Now down $250, Bob is eager to catch up.

J.R Down, our fearful type trader meanwhile, has silently asked himself the last couple of days “what is wrong with me?”. He wanted to buy after the huge run up. But, needed price to retrace down further before he would. This never happened. Yet, from the minor move down, price has now traded up to within one point of the day high. Wondering if he will ever get this right, J.R. waits and watches.