Want to see clear entries? Watch these price levels

From yesterday’s

…Clearly there is pressure building for a directional break soon. Whether that
happens before Thursday or afterward remains to be seen. I’ll trade the morning
hours with usual aggression and then see what has transpired from there. If
price action is trading OUTSIDE of the noted sideways range, it might offer
prime opportunity thru the day

Previous Session

ES (+$50 per index point)

“Was it something I said?”

S&P 500 rolled inside its established sideways
coil until Dallas Federal Reserve Bank President Robert Fisher mentioned
something about inflation. Thin volume and subsequent lack of buyers left those
coiled markets in danger of free-fall, and that they did. Once the 1229 level
gave way, it was a straight crush lower right into the closing bell.

ER (+$100 per index point)

Russell 2000 broke its ascending trendline from
Friday, and the first candle closed below that mark was early confirmation to
sell. Next sell signal in the sequence was 671, which broke by a few ticks and
pulled back to retest former support now turned resistance in classic failure
fashion. Diver down from there.

This Session:

ES (+$50 per index point)

S&P 500 has upper resistance today near 1223,
where clustered sell stops await any hapless buyers who first press that level.
Bullish confirmation would come above 1227, which is not likely to be seen

ER (+$100 per index point)

Russell 2000 futures have similar resistance just
below the 670 level. Heavy sell pressure will hit the first test of this mark,
which may easily post high for today as well.

Semper Paratus

The U.S. Coast Guard have a motto that essentially says “always be prepared”.
That is an equally fine motto for traders to heed as well. After relentless
sideways chop from Friday thru midday Tuesday, only skilled scalpers had any
profits to show for their efforts. With light holiday volume and price action
holding inside the same sideways pattern, it looked like more of the same into
the closing bell Tuesday.

However, the flip side of light volume is ability
for markets to get extended upside or down. Whoever coined the cliche` “Don’t
short a dull market” never traded thru sessions like yesterday.

Lately I have found myself leaning more towards
large scalp = small swing tactics of -$100 per mini contract stop and +$200 (or
greater) profit targeted. Stop management plays a role in there among other
things, but the gist of it is both ES and ER offer several such clear
opportunities almost every day. Afternoons like yesterday allow intraday swing
traders to cash in big, but it can be a challenge to sit thru low volatility in


The dead ranges broke with emphasis when least expected. Today will
probably swing sideways in tradable fashion, usual behavior following an
afternoon trend move. Friday’s employment data is the next big visible excuse
for momentum traders to apply their emotions in the marketplace, so these
remaining sessions this week could be quite active indeed.

Trade To Win

Austin P


(free pivot point calculator, much more inside)

Note to our APR method
members in here: this week’s video series will show where ER offered +16pts on
eight turns while ES had +20pts on six turns potential yesterday.