These 2 Charts Can Help Your Trading

Wednesday’s session was another
The big cap indexes went nowhere and didn’t do anything at all. Small
caps were tradable, as always. Still awaiting the next directional push now that FOMC data is digested and earnings season well underway.

ES (+$50 per index point)

S&P 500 futures went nowhere yesterday. A
repeated roll between the daily pivot point (solid navy blue line) and R1 value
(dashed red line) was the 4pt true-range for most of that session. An occasional
blip higher or lower was immediately vacuumed back inside the channel.

Needless to say, this was a very difficult
session to trade for any method or tactics. Trying to wrest decent profits from
within such a small, choppy range is a Herculean effort. These are the days we
merely tread water within between directional and/or normal range swings where
easy profit potential makes up the averages over time.

(+$100 per index point)

Russell 2000 futures trudged upward in defiance
of all other indexes as they so often do. An early bounce from the pivot soon
worked its way above R1 and then rolled sideways for the duration. It was a
scalper’s tape for sure, but profitable within the small swings.


Nothing new to note in the past several sessions. The general pattern of stock
indexes for many months now has been extended consolidation & chop, broken by
brief surge moves up or down, followed by further extended consolidation & chop.
Tough sledding for trend and swing traders right now, which is why I’ve
personally switched focus to fast chart settings and smaller potential gains
intraday. When the swings and trends return, we’ll play them. Until then, 5min
charts or smaller are where it’s at.

I’m away from the office Thursday night thru
Sunday afternoon. I’ll handle office & admin tasks before the SuperBowl and
during its halftime non-event. Please have a wonderful weekend, and go Steelers!

Trade To Win

Austin P

(Online video clip

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.