Adjusting the Trade

For some odd reason my stop-loss disappeared and I wasn’t stopped out when the market rose 14.41 points on Friday’s close of the market.  The market reopened Sunday night at 6pm, so I am adjusting my trade.

New Stop Loss: 1115

New Price Target: 1025

Total Account Risk: 3.33%

I’m expecting an 80 point drop soon, but unsure of the exact date.

Retracement hits 76.8%

Based on the Zig-Zag correction, which subdivided into an expanding triangle when viewed up close on an intra-day chart, the market (if it stops here and falls) will likely move 80 points to hit 1025.

Exppanding Triangle hits Top of Range

The expanding triangle hit the top of the range.  Originally, I thought it would’ve stopped at the other location and fall short of the trendline I drew since the Gann date was September 3 until the 10th.  On the day of the 3rd, a steep rally hit the market rallied 14.41 points, but failed to stop me out for whatever reason.  My orders subsequently disappeared and my position is still open.  Ideally, it should stop me out quickly so I could re-enter the market after the gain and readjust the position.  Either way, I’ve adjusted my position accordingly and readjusted my trade.  I’m short 15 contracts at the moment, after adding 5 contracts in light of this new pattern.  The risk is on the high end, at 3.33%…but this is a trade that can substantially increase my account by about 12.5%. The risk-reward is almost 1:4 in this case and I think based on the current trend of the market and timing of everything in place, it’s a good trade.