Hello EminiEdge Traders!
Seems like the prediction made in the "Peek Behind the Emini Curtain" may be setting up and a drop may still be in the cards. Had a selloff start mid-day which looks suspicious. We had good opportunities on the long side early and the short side late, IF 1) you could read the structure before the day started, 2) Could read the price action as the day unfolded and 3) had a sound plan on how to trade the accurate structure with the price action. Not a problem for us who religiously reference the "Finding S/R Guidebook" and the "EminiEdge Trading Manual", all in a days work. If you have these, then you likely had these setups identified before the day started and acted on them as it unfolded with out hesitation. Good for you, just like a professional! If you don't yet have the education materials you need, what are you waiting for? Quit being a spectator and take action to become a professional... I talk a bit about the importance of the chart structure in the video and the setups that were available today. Hope this is useful for you!
Howdy Emini Traders,
Quick video to propose the possible fake out I talked about in the last trading video. I'm seeing a possibility that we may see a big plunge rather than a recovery. Normally I don't make predictions because we just try to trade what we see, BUT, worth pointing out a bigger term anomaly that may warrant some options for a hedge... Time will tell.
Quick update to highlight where we are...
We're finally extended back up to the top side after making a nice bottom on good volume. Back on a ledge again after the rally this week, but with the VIX lining up for a top, we'll likely see some chop or a drop first. The strength points to a shorter term bottom for now though so don't expect the drop to be as vicious as previous. I'm not convinced the trend has changed to up in the long term and would not be surprised if the big down trend continues, just after getting everyone excited to jump back on the endless rally... Don't buy it and be ready to short again soon.
Our Emini day trading proved that the chop we were expecting was real and gave us a bunch of decent setups off the support and resistance zones. I got long a few times early and couldn't get a runner in the bag, but saw something happening around 10 AM Chicago that made me want to shift to a short, and it exploded down so fast that it stalled my platform. Those are the kind of moves that if your stop is triggered the slippage is 10-15 points and there isn't a dang thing you can do about it. Truly a scary thing to watch when it is happening.
Our zones pulled their weight again as we kept bouncing nicely between them. The zones gave us some nice structure to frame the day and take some profits. Not as much as I hoped but any up day is a good day. Tomorrow (Friday) will be fun as selling the bounces seems in order as long as we trade what we see, not what we think... Down is our expected direction on Friday so keep those longs on a short leash, especially in the morning. After that we may get a bounce being that Fridays are generally bullish, but we'll see. Make your points in the morning and do something fun in the afternoon so you won't have to worry about the slow moves in the afternoon...
Still waiting to see if the Emini is going to confirm a crash or is the correction over. Have the first sign of continued weakness but not sure if it wants to go or not, still hanging strong. Had a good day even though I missed an entry in the early going. Sometimes it seems I should just market in, but most of the time when I do that I get slipped horribly... Attached real time trade video audio makes it seem like I'm running a race because of my breathing but I guess I still get excited when trading...
Well, well, well...
Looking into the face of an EminiEdge... How can you not be a smidge nervous looking into those eyes? Well, I digress, but you should. The expected reversal on last Wednesday is almost a failure. Failure of a trading signal, and at best a capitulation of the setup is a setup in itself. Wait... what? When a setup fails and capitulates or reverses, it many times becomes a trade in the opposite direction. That's kind of where we are with the 1865 and then again on the 1800 level on the ES. We had a dandy indication of a breakout to the upside on Wednesday, waiting for confirmation on Thursday, then Friday made an about face. This lack of strength is worrisome, but until we get a close down here, still no confirmation but only a zebra stampede forming. Only time will tell the direction but as mentioned before were on the edge, so trade what you see, not what you think. That's kind of the theme of this video as it is easy to get sucked in...
Okay, okay, I know Groundhog day was yesterday, or .... was.... it? The market is bouncing up again as we predicted in the EminiEdge post "Sitting on an Edge" post after having a doozy of a rally. Our S/R levels served us well today and we were able to scoop up about 20 points for our trouble in the initial downtrend, fast and furious like. The shakeout move was more violent than I though but they wouldn't be a shakeout if they weren't uncomfortable. This seems to have set up a substantial reversal day as indicated by the price and the volume of the professionals buying it up. If we don't crack up in a big way, maybe we'll get us another zebra? Hope not. One of those interesting days when my bias started out short, then switched to a strong long. Ahhhh,,, If they could all be as volatile as today... Hope you got a piece of it...
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"Trader Joe" trades the Emini S&P exclusively and is the main influence behind EminEdge.com.
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