Here’s my trading plan for today
Wednesday’s session was one of continual
muted ranges. Tuesday saw selling across the board without resistance from dip
buyers at all. The customary “morning after” swing lower offered modest profits
in all but the ER, which covered considerably more chart on a comparative dollar
ES (+$50 per index point)
S&P 500 was a short near 1267.50 as called out
in our public room, which dropped to 1263.50 swing lows in the morning before
popping higher. Something less than four points’ potential was offered in that
predictable move. After that, the ES churned sideways. Traders had to be content
with a one & done morning of paltry gains or some chicken-picking profits of pin
feather size scalped beyond there.
Such is the nature of holiday stock index
markets… a condition most likely to change considerably just a few days from
YM (+$20 per index point)
Dow futures signaled shorts near 10860 in the
early a.m. that rolled down to 10820s before gyrating sideways. Never visited
the pivot point, no directional bias, no range to speak of. Typical holiday
session, albeit in the middle of this week with two days left to work.
NQ (+$20 per index point)
Nasdaq 100 futures gave the same general look.
Sell signal near 1688 off the open, worked for +10pts or so, coiled sideways,
popped a tiny tad with the ER, dropped into the closing bell. Ho-hum kind of
day, no big deal.
ER (+$100 per index point)
Russell 2000 futures offered shorts below 683
that worked down towards 678 for more than twice the profit potential of bigger
three indexes above. Afterward, it broke a sideways pattern to the upside
offering longs near 681.50 that hit the pivot point magnet near 684+ as both
moves were called in our public room as well.
In between, a continuation short move near 681
at the end of that midday coil failed to work. A three-trade sequence of short,
short and long offered moderate profit potential had all three trades been
Two sessions left in 2005, of course. Anything can happen on any
given day in any financial market. That is an absolute fact… those who’ve been
around long enough have been surprised many times by unexpected market action.
We might not see any normal price action = ranges until next month, but if the
intraday charts go vertical up or down, continuation entries on (strategic)
first pull backs in that direction should pay off. If charts fail to go
vertical, simply take the day off instead! ;>)
Trade To Win
(Weekend Outlook trend-view section…
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.