Here’s how the levels played out today. I gave added levels (red & green lines) in the chatbox as well. The levels given worked all day long, including pegging both the bottom and the big down move prior to the EOD explosion. Again the white dots were rock solid signals and the red dots worked depending on your trading plan. The red oval was a great level if you’re a pure scalper, you got to dip in over and over. As you can see these work in chop or trending days making them very noteworthy!
The white dots are where the levels worked on the button. The 2 red dots are not on the dot but provided a divergence trade if that’s in your repertoire.
One could argue that the 5 minute cleans things up a bit and lets the candles form. Trade whatever timeframe fits your trading style but I would suggest marking these levels on your charts.
I’ve not cut these posts off from the general population yet but as soon as I’m healed enough to be consistent on posting I’ll shut this down except for those that are posting valuable content or that have paid the $5 monthly donation. These aren’t magic but they have proven themselves to me time and time again. If you have the right discipline and have created a setup off these levels you have plenty accuracy to be net profitable.
Daily Key Levels For Sept. 10th 2008 -YM-
High = 11,484
POC= 11,418
Low = 11,301 -ES-
High = 1258.25
POC = 1249.25
Low = 1230.00
Some people say that a failed signal is the best signal. Im not sure if it the best but often times if you catch a true failure then you can nail a big move. One thing that I look for is what I think is a fake breakout used by shorts as a chance to dump into some buying, giving me the heads up a big move down is about to occur. Today I got a great example of this in the S&P mini futures. Below are 3 charts of the 5min ES from todays action, these will help give you a rough idea of what I saw hapen in the moments leading up to the sell off.
part 1 - what everyone sees setting up
part 2 - the fake breakout, then complete failure ( the bottom of that word bubble cut off the word failure)
In the forum we have had some talk of hidden buying and selling and some questions were asked. MC started a thread to help answer the question here http://www.tradersbase.com/forum/technical-analysis/663-define-hidden-selling.html You may not like to trade off volume alone but I think it could be a big help to any trade set-up. Today I just so happen to see something that fits into this topic. Below is a chart that points out some possible hidden buying that tipped me off to look for a long set-up on an intra-day basis.
What I saw was a large spike in volume (biggest of day) with a short body candle after a big swing down. To me this means that buying volume has stepped up to soak up the sellers. Had the market been moving up strong going into that I would of seen it as sellers dumping into the buyers. This gives me the okay to take a long signal, today it worked out for a good day trade.
Well the Key pivot play did not trigger today and that play is off for now. I do now have a bullish stance going into the next couple days. The chart below shows a bullish divergence with the 7 period RSI. If we can break todays highs I expect us to head right up to the 38.2% fib as shorts get squeezed, I think the dollar can continue to rally helping give oil the much needed push lower.
Okay, today’s action set up a key pivot play in the S&P futures. The trigger for the entry will be to get long on a move to 1373.50 in the S&P mini SEPTEMBER contract. make sure to note this is the september contract not the june. The reason we want the september contract is because the index futures will rollover on the 12th. So we must hit 1373.50 tomorrow, if it’s not hit tomorrow then the trade is off. So the set up looks like this:
/ESU8
Entry trigger Long - 1373.50 (must happen on 6/10/08)
Target 1 - 1384.00
Target 2 - open
Stop Loss - 1352.25
Just something I noticed the day before fridays large sell-off. About mid day thrusday we had been trending up all day, then a quick spike down came in with the largest volume of the day before the market continued it’s rally higher took give the look of a very bullish day at the close. On friday as soon as that same area was re-tested the surge in selling came again. Black box selling?? who knows. Below you can see a 2 day 5 min chart of the S&P mini futures.
Youtube’s uploading is not available again tonight and im not sure when it will go back up, I did a video and will post it ASAP. For now Ill give you a quick run down. S&P is sitting right near resistance, if we gap down on the futures below 1365 then go with it the gap and short, If we open up flat you can take a long in an attempt to catch a breakout move past that trendline. Gold Had a little bounce today, I think if we get a move up tomorrow in the 915-920 area i would see it as a decent short entry. I think EUR/USD has topped for now, Any shorts taken here should have stops at the highs. USD/CAD is still range bound and I still think it is a long for now.
Quick video review. All the markets we have been talking about have finally followed through with great moves. S&P’s finally took off like a rocket,USD/CAD performing well, EUR/USD seems to have topped and gold has tanked as predicted. So all in all what a great day for TB.com followers. Now you manage the trades your still in or sit on the side waiting for new ones. Hope you all made some $$$$$ today!!!!!!!!!!
