So FINALLY got the break up we've been waiting for FOREVER it seems and talked about in the Sitting on an Emini Edge post and the Emini Bounce video. The strength started overnight and continued this morning, not even offering a decent pullback but showing us a pre-breakout pause instead at our Resistance turned support at 1900. I had a long bias into the open and was itching for an entry as I mention in the video of the attached trade. If you weren't quick you got left in the dust with only a couple of re-entry opportunities on the way up, followed by a couple of hours of sideways "chop you up" action. Ended up +19 points per (3) lot and only took the one trade and called it a day. Time will tell if this is a bottom and a permanent break into an uptrend or a retrace into a longer term down trend, but really we don't care, let's take profits no matter what the market gives us, that's our goal. Noticed I'm talking really soft recording the first part of the video, not sure why, must have been tired... Anyway, hope this is useful to you, and if so, feel free to drop a +1 or share, always appreciated!
Staring at my screen and still see this dang Zebra stomping on my charts. Thought we would see the break up a couple of days ago, and the longer we sit here the more bearish it is. Thought the FOMC was going to give us the break up for a nice bounce, and did get that, but at the end of the day it couldn't hold and crashed back down. The support drawn in last week is still the level to take out and I'm still holding firm that a bounce is in the cards up to the 1950 level, even 2000 if things get really exciting. Don't get me wrong, still a realist and we are stalling WAY longer than I thought, so I wouldn't be surprised if we pierce the support and continue this dive down.
Had a few nice setups this morning and got a hold of a few, then stopped before the HUGE rally as I figured with FOMC we'd start to stall out early. Still had a nice long into support in the first 10 minutes for a couple of points, a short off S turned R 15 minutes later which I choked off too early. Finally seeing a turn at the DB with a fantastic EE diverge confirmation the uptrend was on and a nice long at 9:35 right in to the S turned R for 8 points and stopped for the day with 10 points per lot. Of course the move of the day happened a few minutes early about 10:20 with a clean EE and a few aggressive entries once we got moving. Makes the 8 points look like amateur hour by comparison. Gotta keep the big picture in mind though and churn out the wins and remember not to get greedy, that'll "get ya"...
Overall the SR zones pulled their weight again and kept us on the right side of the market. If we can get through the 1880, then the 1888 area, all bets are off and up we go. If not, more zebra or maybe even a penguin, we'll see.
Hope you got a piece of it!
Good Trades and Good luck,
Greetings EminiEdge Traders!
This video goes through a review of Friday's trade and some trades I took, and should or shouldn't have. It amazes me sometimes how you can look at the same setup in the same context and see something different. My bias was long entering the day, but not seeing the forest for the trees I didn't see the dandy shorts that were setting up in front of me. As I mentioned before this is something I'm working on, that is trying to trade in both directions, with and against my current bias while understanding some might be counter-trend trades. Getting closer, and reviewing days like this gets me one step closer to that goal. Had a nice day on Friday but could have done much better if I could have flipped when I needed to... well, hopefully next time.
Anyway, hope this is useful to you, and if so, don't be shy and drop me a like somewhere, always appreciated!
Just a quick review of the Emini short covering bounce we had today that I talked about in the update yesterday... Really expected this bounce to stick, but was conscious that we are still in a downtrend so as always have to keep the trades on a short leash. In any case, a 10 point bounce is nothing to sneeze at, especially if you can be done with your day by 9:30 AM. Seems like we're getting our stall here a bit, maybe a continuation of our zebra stampede. Hope you got a piece of it and hope this is useful to you...
Greetings EminiEdge Traders,
Taking a couple of days off and a holiday to boot, but back to the fun of trading. On Friday the setup was there to grab a couple of straight calls near the end of the day. If you didn't get the chance, there's still time if we get a little pulse down on Tuesday morning. We're looking for a short/intermediate term bounce and short covering and a continuation of the ongoing zebra stampede. Looking to target the 1950 level eventually but don't care if it gets hit exactly, just some counter trend rally to value the calls. We're still in a downtrend and we need to be careful with the day trades though the first good pullback can likely be bought, maybe around when the housing index plays out. Then we should look for the short covering to run it's course and eventually stall out. Watch your S/R for entries on the bounce up.
If we get near the 1895 area I'm going to look to take some profits off the table and trail the rest of the options a bit... If I'm wrong, well, then I won't! :)
Wowza! Can you say volatility? Swings like these don't come very often, and good thing. It's nice when you pick a direction and an entry and get it right, but if you're wrong, yikes! I was chewing my fingernails waiting for a good entry short and we got it early (red arrow), right into our initial resistance level. That move alone was good for 12 ES points or so per contract and it went quick. The price action was so "fidgety" that I was very anxious real time. During the reversal move up there was also a couple of aggressive long entries off dynamic support at the green arrows (page 39 of EminiEdge Trading Manual and e-book). We don't see this aggressive trend entry setups very often so here is a great current example of what it looks like, probably an another easy 20+ ES points worth per contract! After this nice move, a retrace right into our second support zone, the action reversed and screamed on up nearly 40 points, incredible. It was safe to say at that point, at least on a shorter time frame, that the up swing impulse had begun, and a nice re-entry presented long (blue arrow) if you were patient enough to wait for it and there was an alternative EE there for confirmation. These days you do have to have nerves of steel and deep pockets or you can get wiped out in a hurry with terrible slippage. Be careful as this volatility is likely to stick around a while based on the bigger term picture... All that being said, +40 points available in a few clean setups and all done in 2-1/2 hours, seems like EminiEdge trading can't get much better. There were varied entries in the afternoon but I couldn't last that long, with the volatility my nerves were shot by then. :)
Remember we are still in a nice breakaway downtrend as mentioned in our last post about the "Emini being on a knife edge" and this volatility is part of that bigger picture so beware. I'm still working on how to take pieces out of both directions consistently by combining price action with time cycles to try and get timing right and expand profits even further... work in progress for me. Keep an eye on the volume as well as this is keeping us from a full on collapse at the moment, hence the stop and reverse move for today. We will likely get another spike in the down direction soon (zebra stampede anyone?). Be nimble and open to trades in both directions as there will be more opportunities if you can get the price action read right by using the techniques taught in the EminiEdge Trading Manual, or the alternative is to get run over!
Lastly a housekeeping note, a big thanks to those who took the time to respond to the survey. I really do appreciate it. If you missed it and still want your voice heard there's still time as I haven't taken the time to tally the results yet. You can find the EminiEdge Trading Survey here...
Well, the Emini Support talked about in the last Emini Trading video almost breaks but holds for now. Sitting on a knife edge and we will probably get a decisive move sooner rather than later. Coming into the day we were looking for shorts and struggled a bit early, but sticking to the plan payed off with a nice short for 11 points per lot. The support area was rejected on the daily time frame though and we bounced up again so the bulls still have some oomph left. The support and resistance levels outlined our action decent as well today as there were some longs and shorts available, nice volatility for us. Hope you got a piece of it.
Well Well... China news causes a big dump in our Emini today, or did it? Regardless of why, got a little chunk of the down slide late in the day, "we take em as we see em"... Have some longer term support and resistance that we have to contend with and we could break up or break down. Don't care, just give us some movement. Good thing we caught some short earlier because the market rocketed into the afternoon. Don't know what that's all about... Had a lot of technical issues for some reason preparing this video, frustrating. That will teach me for taking a few days off I guess. Anyway, hope it is useful to you.
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