This Is What Trading Is About
Both major markets are in chop mode this morning — as we
would expect given yesterday afternoon’s downdraft, which
according to the pundits was the result of either (a) a White
House SARS rumor, (b) early leaking of the IBM accounting
shenanigans, (c) a hard break in an overextended Nasdaq
market, or (d) beginning-of-month profit taking. Thankfully,
we’ll leave the why’s to the non-traders as we simply
continue to follow the recent strong market guides which had
us long biased until the 13-minute trend broke as we reviewed
in Monday’s column. Such bias continued this morning and led
to the
The Potential Fly In The Ointment…
Both major markets are following through on extensions to
Friday’s closing daily and hourly bull cups as we go to
press, and are currently hovering near multi-month
highs. With all trends strong short of monthly, the
potential fly in the bull’s ointment remains one of extension
as markets continue their recent runs for the roses. As a
result, we’ll continue to monitor developing price vs.
momentum
Where I See Textbook Trading Today
Both markets are back trading in textbook bull-cup fashion with our course favorite 15MA handle bases in play on the hourly which comes in at about 956 on ES. As such, long trades on approaches can be considered for possible future extensions with stops to the so
What To Do Until The Merry-Go-Round Stops…
Our trend game
may be quickly evolving into one of looking like heck for
weakening momentum as the air gets thinner and as ES
approaches the 965-975 zone which the whole world is watching
for a mammoth bearish monthly head-and-shoulders neckline
test. Sort of like, “Yea, the Sox are in first
place (pun intended), but it is just May 29 and
What Strong Markets Often Don’t Provide…
As we know, strong markets often don’t provide “preferred” entry opportunities, in such cases rewarding only those with strong and immediate conviction as was the case throughout much of yesterday. In any event, continue to use any weak divergences on climbs to consider scaling out of longs, which may also provide a foundation for a tradable retracement on the short side. Markets of course don’t go straight up, nor do they go straight
This Is Why I Share My ‘Method’
Reality is the best teacher. Given the early strength coupled with the stretching of price from longer term supports, traders may want to eye a potential pullback toward 13-minute ES support as the day progresses, with an even more careful eye on any potential price vs. momentum divergences to gauge exits should an initial bounce develop.
Take A Look At The E-Minis From This Perspective
Both major markets are in the red after an initial extension off Tuesday’s closing bull cups — fueled in part by trader reaction to the Michigan Sentiment data — was capped just shy of 950 and subsequently led to a sequence of bear reversal cups on the one-, three-, and ultimately 13-minute charts. “
Even If You’re Trading Longer-Term Time Frames, Try This
My afternoon bias is somewhat
neutral as we go to press, although I remain in the
“trust until broken” mode on the 13 and 60
supports.
Try This Trading Insurance Policy
Both major markets are in the red as we approach midday,
with ES trading slightly south of what had been key 938
support. With intraday trends to the south following
several price vs. momentum divergences, longs don’t excite me
a
Here’s What I’m Looking For This Afternoon
Both major markets are trading within the confines of strong
opposing 13 and 60 minute trends as we go to press, providing
an outstanding scalp environment as we await the trend
conflict
Here Are Some Myth-Defeating Principles
It’s Monday, which of course typically means “Soapbox Time,”
but let’s first peek at the intraday markets. Both major
markets are holding Friday’s key hourly uptrends, with our
favorite 15MA handle bases providing strong guidance for the
morning extensions from the hourly, and subsequently
13
Why Expanding Your Perspective Today Is A Smart Thing To Do
Slow goes it this morning as both major markets have
rebounded off early lows, yet have only provided trading
opportunities with about as much probability as an Antoine
Walker 3-point shot (Bill Pidto, are you listening?). Both
markets are trading amidst serious timing conflicts, with
daily