Be Prepared For A Stair Step Trend Day…Here’s Why
Pre-market futures are slightly in the
red off yesterday’s highs. As Dave Landry so aptly profiled last night, stock
markets are merely rolling = coiling sideways in this late summer period of (in)action.
Great for intraday traders who catch the quick wiggles up, down or both while
maddening for most other approaches. There is opportunity for profit as intraday
traders, so let’s take a peek at what are the important zones of bias for today.
ES (+$50 per index point)
S&P 500 dipped early, ramped on a lunchtime buy
program and coiled near session highs for the remaining afternoon hours. Bullish
above 1235 and bearish below 1231 if things get directional on us today. Not
expected, but anything can happen in any financial market!
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NQ (+$20 per index point)
Nasdaq 100 held its pivot support on Monday
while all other indexes dipped early. It led the upside pop on a strong buy
program and when that computer buy turned off, so did this index for the
duration. The 8pt range between 1606 and 1598 is middle ground, while bullish
above and bearish below is the bias to hold.
YM (+$5 per index point)
Dow Industrial futures followed the same dance
steps in synch with all others. Early dip, lunchtime pop and afternoon coil. A
40pt zone of middling indecision between bullish and bearish lines of
demarcation.
ER (+$100 per index point)
Yesterday, Russell 2000 futures gave a buy
order near 660 that rose to 663. Then came a sell signal near 660.50 that
dropped to 656.70, followed with a buy signal from 660 that eventually rose to
669 session highs. At $100 per index point, there was plenty of opportunity in
our method to capture solid gains from a session that went essentially nowhere
on a day-to-day basis.
We called the +3pt short trade and buy signal
from just below 660 in our educational room. I personally caught the first one
and left for the day right before that buy signal engaged. I’m on quasi-vacation
until Thursday, whereupon a four-day weekend atv ride (my summer vacation)
begins in earnest. The money I missed while cruising Gander Mountain for tents,
cookware (and my archery gear tuned up) would have easily purchased a new
four-wheeler.
Timing is everything. At least our members
cashed in big-time, but none offered to share the rewards with me.
Today I’ll be in the chair all session, now
that pre-vacation errands are completed. I double-dog dare the ER to make
similar moves this session as yesterday! General bias is long above 665 and
short below 661 if things get trendy for us here.
{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}
Expiry Event
Option expiry week is usually (but of course, not always) good for at
least one large-range session event. We have a good chance of seeing such this
week, for a number of reasons. Market action has been rolling = coiling sideways
for awhile now, and breakout or breakdown seems imminent. Unless they save the
trend party for post-Labor day return of prime time season, be prepared for a
stair step trend day higher or lower real soon.
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.