Why I’m expecting a directional move

Friday’s price action did nothing to
break the recent narrow-range
channel that stock index markets have mired
themselves within for the past several sessions and counting.

ES (+$50 per index point)

S&P 500 futures bobbed sideways along their
daily pivot point in familiar serpentine fashion. No real structure to this
chart… just listless action without any conviction either way.

(+$100 per index point)

Russell 2000 futures coiled early, then gently
plodded their way higher all day. Not much of a range overall, but the upside
thrusts did offer profit potential with rather methodical ease.


Simple picture heading into this week ahead. Lots of economic data reports as
excuses for knee-jerk traders to make their usual moves. Global unrest and
concerns continue to grow all of the time. End-month sessions the first two
sessions this week give fundamental upward pressure from big-money manipulation
of the tapes. All of that on top of impossibly small ranges the past several
sessions has stock index markets wound tighter than Bode Miller’s endorsement
deals future. Sooner than later, both of those markets are going to break.

Look for directional action and probably one –
two large range sessions this week. If an intraday trend move begins, look to
follow along rather than fight it while seeking reversals.

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.