I have an upside bias and here’s why

With a new month ahead and escape from
the end-month / end-quarter manipulations of last week’s result, buyers and
sellers will be left to price markets based more on pure supply & demand than
anything else. That is always a welcome market condition… “normal” price
action and intraday ranges are usually easiest to trade.

Previous Session:

ES (+$50 per index point)

S&P 500 had closed above its 62% resistance of
previous hi-lo swing and followed that with numerous taps to retest said support
on Friday. After rolling thru a very, very narrow session all day the ES managed
to squeeze out a close near session highs. Total of a 5pt intraday range for the
most part marked yet another incredibly dull day with price action “pinned” in
place by window-dressing players.

ER (+$100 per index point)

Russell 2000 also made one early stab at
previous resistance now presumed support and bobbed its way upward to go out
near session highs as well.

Overall the day went as expected & predicted…
muted and quite a snooze-fest. Today has historical promise to be wide-range and
directional for a number of reasons.

This Session:

ES (+$50 per index point)

S&P 500 rolled inside the aforementioned 5pt
range all day long. This is tough trading for anyone, even the 2pt scalpers
trying to pick off paltry profits per play.

Today’s action should be bullish above or
bearish below Friday’s range. It is really simple as that following such a
day-long flat coil storing energy to soon be burned. Those final hour lurch a
few points upward to closing highs will be first mark of resistance today, and
1230 remains support until otherwise broken.

ER (+$100 per index point)

Russell 2000 futures formed an ascending
trendline upward from Thursday afternoon’s low to Friday’s lower-high close. A
break of this trendline is obviously bearish, while subsequent bumps that hold
should take out Friday’s highs to retest September high price levels above.


Friday’s no-range session should be followed by a normal to
large-range day, upside bias until proven otherwise. New money flow to begin the
month should keep pressing the tape higher. As usual we’ll take longs or shorts
when signaled with equal aplomb, but upside trades should be given a bit longer
leash to reach profit potential.

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.