Here’s my 2-part gameplan for today
Thursday’s session was a straight-down
trend move. One of those sessions where sell signals persisted and buy signals
were clearly absent. Once in awhile, trading offers easy money to those present
& accounted for in front of the charts.
ES (+$50 per index point)
S&P 500 gave at least three clear sell signals
yesterday, all of them holding potential for very solid gains. The S&P routinely
offers +4pt profit moves several times each cash market session, which we will
discuss at length in the weekend educational section posted in TM tonight.
ER (+$100 per index point)
Russell 2000 dove a bit quicker off the open
that S&Ps as it always… driven by momentum traders and more easily pushed
around. As usual, it offered at least two sell signals good for +5pt potential
profit moves if held with room to work into the strong intraday trend.
Overall, Thursday was an easy session to trade.
Simple as that!
This Session:
ES (+$50 per index point)
The ES has gone from top of its ascending
channel to bottom of the channel in two successive sessions. A break & close
below this mark sets up the index for a solid flushing lower, considerably lower
than the 1170 mark being bandied about. By the same token, Fridays are often
reversal days as profitable trend players book profits into the weekend.
ER (+$100 per index point)
The ER has also spanned its channel these past
two days, now poised at a key action point of trend decision. Lower close sends
the market much deeper next week… while a bounce from here sets up retest of
channel highs instead.
Summation
There are several trade opportunities for profit every single day in
cash market sessions… some of them significantly profitable. Today will
certainly be no exception to that hard & fast rule. Pre-market
GDP report and/or
Michigan Sentiment at 9:45am may easily set the morning tone, but this afternoon
past 2:00pm EST will set the tone for what’s ahead next week. Closing bell
squeeze to markup end-month mutual fund statements is possible. All-out dump
into the close is possible. Treat this session as two different halves; morning
and afternoon. When the final bell rings echo away and the footfalls hush across
Wall Street, we’ll have a pretty clear trend picture of what lies in store for
us from here.
Trade To Win
Austin P
(Weekend Outlook trend-view section…
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.