I use my journal as a planning tool. Here is an excerpt of my notes today, Sunday, in preparation for Monday’s trade:
I like the ACS chart. Keep it in mind.
DAY TRADE UNTIL MARKET STOPS CHOPPING AROUND.
Focus on the financials makes sense after the Dubai news on Thanksgiving.
FAS: Trading below the range area between 73.85 and 79.70. It tried to rally on Black Friday off the opening lows but it sold off on the close creating an inverted hammer in the daily chart. It found support at 69.25 and tried to close the gap. There seems to be strong support between 69.25 and 65.60. Any pullback into this area is a buy as long as the price holds above the 65.60 area. There is resistance around 73.10, but if price holds above that level it might find its way to 79.50.
FAZ: Hanging Man candle. Strong resistance above 21.45 and support around 19.50.
I am going to switch between them for Long or Short positions in the financials to make it easier. If the price of the FAS opens higher into resistance, buy the FAZ. If FAS Gaps down into support buy the FAS.
Even though I have charts with the above levels identified with lines, I find it very helpful when I write the plan itself as reinforcement. Sometimes reading it aloud off the journal helps me find discrepancies in my analysis.
Snapshot of Trade Plan for MondayFAS Chart Black Friday 2009
