A big move is coming and this is how I’m trading it

Yesterday’s no-range session
means a breakout/breakdown market move is imminent. We should see some very
favorable price action inside the next session or two… most likely today.

ES (+$50 per index point)

S&P 500 has traded inside a 5pt total range
since noon last Friday. A full 1.5 sessions trapped inside this non-range may be
unprecedented in the past decade or so… I for one cannot recall this dead an
overall range. That said, expect a solid breakout in directional fashion today
or tomorrow at latest. We should see the ES move 10pts ~ 20pts in rapid fashion
soon. I’ll be holding any open swing trades for +8pts to +10pts profit potential
or more when given the chance.

1244 is a dual line of support that will be
flashed as buy signals to numerous gangs of traders with newfangled automated
fib-cluster software gimmickry. Quicker, easier and cheaper to just draw these
grids on the chart if you ask me, but to each their own.

I’ll be selling below 1244 and adding to
positions below 1241 myself. New recent highs would have me applying same
approach to the long side accordingly. This near year 2005 highs as noted in
yesterday’s post would seem to beckon a retest up there, time will tell as

MD (+$100 per index point)

S&P 400 has initial support near 724 and then
again near 721.80 as last line in the sand for bulls. Buying above 724 and
selling below 721.80 as the overall general bias for today.

YM (+$5 per index point)

Dow Industrial futures opened right at their
fib cluster in gap-down fashion and hover there as we approach the open of cash
session trading. 10650 is the bull/bear line on this chart as established over
the past few days. Tight coil since Friday will soon resolve itself
directionally, probably thru a large range day so be expectant of such to unfold

ER (+$100 per index point)

Russell 2000 futures leaked upward on their own
yesterday, then slid back to overall congestion inside the final hour of
trading. Definitely not the sideways pin ES and YM have coiled themselves into
lately, but the Russell will itself make big moves when big indexes breakout

Buyer above 682, seller below and adding to
shorts if 678.50 is breached.

{Price levels posted in charts above are
compiled from a number of different measurements. Over the course of time we
will see these varying levels magnetize = repel price action consistently}

Power Of Thought

“By your words (thoughts) ye are justified, and by your words
(thoughts) ye are condemned”

I can almost always tell when a person is going
to succeed or fail at any endeavor in life purely from what they expect.
Positive expectations matched with perfect practice equals eventual success.
Negative expectations matched with half-baked, slipshod practice habits leads to
inevitable failure.

The thoughts and actions necessary to win are
no more difficult than thoughts and actions necessary to fail. Why do so many
traders choose to walk the losing path thru our profession? We’ll explore that
in some detail inside my blog section here in TM later this evening. See you

Trade To Win

Austin P


(free pivot point calculator, much more inside)

Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.

Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.