Here’s Why There May Be Some Intriguing Possibilities Over The Next Few Days
A break of 13-minute support is a prerequisite for continued
short potential, with a key battleground developing on the
daily ES chart which is testing support on a fourth pullback
following the late May bull cup extension, following
weakening price vs. momentum divergences on the recent
climbs
This Proves The Market Can Play Santa
The noon release of
weaker-than-expected Philadelphia Fed data coincided nicely
with a textbook pullback on a steeply angled 13-minute 15MA
downtrend support, proving that the market can indeed play
Santa from time to time. Heading into the afternoon, traders
should respect the current
How To Avoid Losing The Profit Chair When The Music Stops
At the risk of sounding like a
broken record, chart bias remains as it has been over the
last several days, which includes exiting longs into the
retail flow and watching like heck for divergences on the
climbs — currently evident
If You Missed Some (Or All) Of Yesterday’s Move, Consider This…
While I don’t typically and carefully avoid spelling out
every oscillation — as it would be foolish and impractical
to expect traders to take them all or even multiple entries,
and I refuse to join H.A. (Hindsight Anonymous populated by
those in the “press” that never mention stops and
where yesterday always looks like it would have been traded
perfectly
Here’s Our Primary Source Of Resistance…
Hourly bull cups with potential 15MA handle bases are currently in place, with divergences continuing to be the primary source of resistance each time the intraday periods align themselves with the daily, which is the case heading into the afternoon session.
This Is My Long-Standing Belief
This morning’s action again reinforces the need for traders to keep their eyes on multiple timeframes, along with my long-standing belief that trading is merely about monitoring a few simple indicators on a handful of timeframes. Please note I said “simple,” and not “easy” — lest I get up on my soapbox again — and it’s the interplay and interpretation that is key and takes time to master in this industry where the majority fail. For as it often takes
Where To Look For Sound, Unbiased Guidance
Our chart technicals continue to provide sound and unbiased guidance — rumor
or no rumor — with early downtrend from the open helping to guide the bungee
cord retracement, followed by positive divergences and one- and three-minute
turns appearing on the approach to hourly support.
Why Everyone Is Watching This Longer-Term Pattern…
It seems like old times this morning as the spastic Nasdaq
has likely prompted some traders to head for the
Dramamine. Both markets are attempting to form
longer-term right shoulders with the ES 990 and NQ 1220
(approximate) intraday highs providing the make-or-break line
in
How To Stay On The Right Side Of The Chop
It’s been a scalper’s delight this morning as the overnight
gap above the 13-minute water mark has provided a strong
backdrop for scalp longs off the 13 support or scalp shorts
off the 60 resistance. As I’ve said over the years and
is the case any time we’re in a timing conflict, respecting
each one in terms of entry and exit premise until broken will
keep you on the right side of what some consider
“chop
Where I See Intraday Opportunities On The Long And Short Sides
Wow. The major indices are in the green but well off their
early morning highs as profit-taking has been equally strong
with both major markets probing below their key 13-minute
supports as we approach midday. ES traders may want to keep
their
Why All Eyes Should Be On Divergence
An afternoon break above 13-minute resistance may provide some further hourly extension, yet given current heights, eyes should remain on any emerging divergences in terms of managing intraday long positions, as the music can stop quickly with resulting air pockets in true Wile E Coyote fashion, as occurred just prior to Wednesday’s close.
If The Disaster Taught Us Anything, It’s This…
Those of us trying to help develop traders certainly offer ideas in terms of premise and method selection. Yet if the truly sickening hype, chatrooms, and “analysts” of the 1990s and resulting disaster taught us anything, it was the importance of developing one’s own skill, ability, and confidence.