Here’s how the smart money trades trends
Premarket futures are
trading a tad higher than last Friday’s close. Speaking of last
Friday, it was one of the flattest & narrow range sessions witnessed in quite
some time. Thursday was similar, no doubt due to triple-expiry event behavior.
Following two sideways, micro-range sessions like
that sets up directional and/or surge move price action to come. We could easily
see a sharp move this morning, and could be a sustained trend session up or
down. If price action begins to trend, smart money will go with that flow rather
than fading & fighting in fruitless effort to catch reversals. Tight
consolidations have tapes primed to bust out one way or the other… if not
today, then very soon.
Summation
There isn’t anything relevant in the charts to review this morning, other than
price levels are poised to break upside in old economy indexes while techs
(especially semis) remain flat on their backs. Could be an interesting week of
trading: most players expect muted action until the next FOMC event arrives next
Tuesday, 3/28. It is not unusual for FX markets to make big moves the week prior
to FOMC events, and stock markets are capable of the same. Anything is possible
at any time in all financial markets. Short-term price action in the eminis
appears coiled for a sharp break. We’ll try to catch such a move, and will ride
it until the end should directional conditions emerge.
Trade To Win
Austin P
(Online video clip tutorials…
open access)
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.