Watch these charts for entry signals
Monday’s holiday session
was far from dull. Usually when bond markets with closed and currency
markets curtailed, stock indexes coil flat or drift in directional fashion. Not
yesterday…
S&P 500 gave at least three sell signals and two
buy signals in 15min (or 5min) timeframe charts as it bounced sideways in rather
rangy fashion. How many days this year have we seen total range = one move for
6pts or so? Monday had three different swings spanning 8pts or better between
the bells.
Normal market action returns… those aberration
days like the past two Friday sessions will soon be distant memories to look
back on in history.
ES (+$50 per index point)
ER (+$100 per index point)
Up arrows = buy, down arrows = sell points drawn
on this Russell 2000 chart. I did not take all of the trades issued, but any one
or two of them offered nice potential for the day. Good to see, great to see
normal market action like this!
This Session:
ES (+$50 per index point)
ES runs into serious congestion near 1196.50 and
then 1203 ~ 1204 levels. Beyond there it is clear sailing for a bit toward 1212
and higher.
ER (+$100 per index point)
ER will also open right at key congestion zone
from yesterday’s chart. Above there it faces 649 ~ 651.50 as next overhead
magnets to deal with.
Summation
The return of normal market volatility is a long-awaited blessing to
intraday traders. This morning’s gap-up open has potential to run directionally
or fail miserably with about equal odds. Be patient and wait for entry signals
near key price levels, and then trust the tape to move far enough for solid
profits to accrue. Every day may not be stellar to trade, but enough of them
will be to make our jobs much easier than they have been in quite some time!
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.