The Nasdaq is breaking new high and the Russell and is not even close to new highs. We posted this weekly chart a week ago...is this a clue?
What does this book tell us? Just saying! Time will tell.
At risk of sounding like a broken record...this is why we use triggers. Even though price zoomed in to the Trigger zone, we haven't gotten close to triggering long. We are TAKING OUR LONG TRIGGER ZONE OFF. We will now wait to see what a bounce looks like...but everything points to a visit to the 200 Day EMA. We will post a trigger zone this week.
We are watching the Russell in this area. It had a nice fake on the break but we think the Russell has not caught up yet. If she does then 1200 could be on the radar screens. If she breaks below the 1138 area then the indexes are in trouble. Keep on you watch list.
The Indexes continue to sell and are in need a of a rest or snap back. We WILL BE HOLLDING OFF on shorting bounces. Rallies can be violent so we will wait to see how far we bounce. There are plenty of good opportunities setting up in GC, E6 and CL. No need to force a trade. Patience pays!
After covering our last trade the NQ is still selling off. We will establish new positions on bounces. For now these will be smaller positions. As we have mentioned...snap back rallies can be violent. Remember NO TRIGGER, NO TRADE!
We have covered the last leg of our NQ trade. It was a solid trade. Understand that when markets are selling off the snap back rallies can be violent and quick. Today's afternoon rally was enough for us to cover per our plan. For now we will watch the NQ, ES and TF for more opportunity. Trade well.
The NQ has hit its first two targets. Stops have been pulled to lock in more gains. From this point target 3 is open. However we will watch the break down area at 4218, if price starts trading above that area with volume then we will cover the trade and look for another setup. Ideally we would like to get a quick slide to 4150 area but that would be a perfect world!
After two attempts at getting target #2 we failed! Bummer. That's trading and as we've heard many time, "don't be a dick for a tick", we aren't. Price came within 5 points of our target and back away. We believe price is not done testing the down side so we will hold to our plan. These small bounces are on low volume. On the next visit to the recent lows we...
As we creep closer to our second target we are pulling stops to Break Even plus 10 to lock the trade in. We are fairly confident we will see target number 2 early in the session today. Regardless, we want to manage the trade properly. Yo never know when the PPT will swoop in to save the market. ;) Trade well!
We are short the Nasdaq from our post last night. We have set out stops and trigger. While this chart doesn't show it we hit our first target. We will leave stops in the same place and see if we can get Target #2. Stay Tuned
The bulls were squeezed hard on FOMC (and the day after). After many years of trading this is why we stay away from longer term trades until the dust settles. There will be more than enough opportunity to trade. Most of the indexes are at support or have broken their patterns. We expect a small bounce in the $NQ on Monday followed by more selling. An inside...
No further trades popped up this last week in the Nasdaq and we are 3 trading days away from FOMC. Aunt Janet will make the market move but it's a crap shoot as to which way. There is plenty of speculation surrounding the rate decision but do not get wound up in it. We will sit on the sides lines and see how the market closes after the announcement. Expect...
The $NQ kissed major resistance today and sold off hard. This paints a few pictures. 1st, if we get a close above the resistance area we could see the bulls come alive. 2nd, we should test the lower flag area. 3rd, as we approach the FOMC announcement next Thursday (17th) the market could lose it's memory from day to day and get choppy. For now we are selling...
The $NQ is in the same situation as $ES. Choose your poison. We will not take the direct break. We will wait for a pullback to trigger on a shorter time frame. ANY CLOSE ABOVE 4370 and we will change our sentiment. Next week should be fun. NO TRIGGER, NO TRADE!
The $ES is looking weak. The bounces have been feeble and with low volume. What started as a wedge has evolved into a flag and this points to lower prices. We WILL NOT take the break of the flag. We will wait for the break and look for pullbacks on a smaller time frame (60 min) to trigger us short. NO TRIGGER, NO TRADE!
Ok...we are not perfect and make mistakes. Price touched our trigger zone and we failed to get short. Bummer! We like to see price get into the zone...but its not a hard fast rule. It would have been a great trade. However, we are now back into the flag range which confirms a failed breakout. We will look to get short on any moves to the upside. ...
The $ES is in a tricky spot. Major resistance is above but is also butting up against a hidden resistance area now. It will take some serious buying to get us up to the watch areas. This is not a sell area for us however it is in the $NQ (see post). For now we will keep the $ES on the radar.