Two More Sessions This Month–This Is How I’m Trading Them
S&P 500 gapped down at the open, wedged around
its daily pivot point and resumed the recovery from there. Our method signaled
one short and two trade entries that were highly profitable overall for the day. Gotta love these directional sessions like this!
Today’s initial support comes in near 1210.50 at
the 38% mark, and bearish back below 1207.00 on a general basis. Let me clarify
that these ARE NOT by any means the sole trading triggers, zones or anything
like that for me. They are key points of action in most sessions as one can
easily see by reviewing what we’ve marked in the past followed by next session’s
behavior. That fact is evident at a glance back thru these archives.
ES (+$50 per index point)
Many times we will get long or short triggers
near or at the key zones, as happened yesterday. Often we get additional trade
signals well away from these zones of action that are highly profitable as well.
Just a point of clarity I’d like to add, lest anyone think these few lines on
any chart are a complete method approach alone. They are not, but certainly mark
where bulls and bears likely prevail.
NQ (+$20 per index point)
Monday was also a stair-step higher day offering
solid profit potential past the opening drop. Nasdaq 100 has initial support
near 1570 and begin looking bearish below 1564.
YM (+$5 per index point)
Dow Industrial futures walked upward in
methodical fashion like all other emini symbols, offering similar profit
potential as the rest. Today’s initial support is being tested off the open of
futures trading in Globex session. Not unless 10400 is broken on a closing basis
will we have bearish confirmation to work with.
ER (+$100 per index point)
Russell 2000 futures are bullish above 653 and
should have a cluster of buy-stop orders hovering near that mark. Same
directional action yesterday as other symbols above, with usual greater
dynamics. Our method offered short signal near 647.50, long signal near 647.50
and long signal near 653.00 as the day progressed.
Potential results of -$100, +$500 and +$300 per
emini contract on these signals would eclipse potential of NQ and YM combined.
For those who ask why I only trade the ES and ER, it is a mathematical fact of
pure risk to potential reward ratios available in the market.
{Price levels posted in charts above are compiled
from a number of different measurements. Over the course of time we will see
these varying levels magnetize = repel price action consistently}
Summation
The bias is bullish heading into last two sessions this month. Mutual
funds will be marking up stocks in "window dressing" fashion as we probably
witnessed yesterday. When in doubt, hit the long side with a bit of bias and
that should prevail into the next two session’s close. By all means we will
short the clear sell signals, just expect a fundamental upward pressure until
September 1st arrives.
Late August has been much more tradable and
potentially profitable than most of us feared. The last few years have been
total dogs to trade during the Dog Days of August. Not this time! Four more
sessions this week should offer solid setups before the holiday weekend and
unofficial end of summer arrives.
Austin
Emini Trading Education, 100% Money-Back
Guarantee. Click here for more
information.
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.