Friday the 27th brought about some strong edges for overnight traders to consider. Below is a look at the Odds Sheet as it stood near the close.
The Odds Sheet Averages were all green. This meant that every one of the index securities we track met the Overnight Edges standard min criteria for a possible long trade. Additionally, the EdgeFinder showed a large number of compelling bullish studies. And there was nothing suggesting a bearish edge. So with everything pointing to the upside I was compelled to take a long position overnight.
In a special report I sent out to subscribers I included a study that indicated a 4pm entry was likely a better play than my typical 4:15 entry. So I went long and was filled at 2103.5. This was an improvement on the 4:15 last trade (2105.25) but still a little above the ES settlement price of 2102.75.
Since Seasonality was so strong I elected to use “X Target”. I also used a loose stop.
ES ran up some during the night, reaching as high as 2109.25. So traders using the standard target would have been paid. But it did not quite get to my target, and then it fell back down. At the 9:30 NYSE open I exited at 2102.75 for a 0.75 loss.
It was a very mild loss, but it was disappointing, since I was so close to realizing a big gain. Sometimes I will raise my stop near breakeven when I get close to my target. This wasn’t quite close enough for me to do that. So it was a disappointing night, but not a terribly damaging one. Not all good setups are winners, but by limiting myself to trading just the good setups, I have managed to come out a winner in the long run.
Back later with some more…
New to the Odds Sheets? Check out this video for a detailed explanation.
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