I have only been trading from the short side since yesterday morning. I will continue to look only short. If I miss a good long trade, it's not a big deal.
The point I am making is that I trade only one side of the market. I develop a bias and then I apply my signals and money management techniques, which is my edge. I only traded from the short side yesterday. On Friday, once 1201 was hit, I began looking long and made two profitable trades from the long side. Yesterday , I only traded from the short side and had one profitable trade out of one attempt. People have asked for analysis instead of just trades. When I do post it, I then get grief. Go figure.
Today's Price Points ES Z8 (Emini S&P 500 Futures) = (1st) Short @ 1112.50 Target 1072.25 Stop 1162.75 (order not placed yet) (2nd) Short @ 1168.75 Target 1072.25 Stop 10pts (order not placed yet) 3rd Resistance 1345.75 2nd Resistance 1243.25 1st Resistance 1174.75 *Intraday Support/Resistance = 1140.50 Reason: Talking through the trade Market Overview: Congress is out due to the Jewish holiday and will be back on Thursday to vote on the bill ahead of the House re-vote. Most of the uncertainty has evaporated from the markets i.e. we now know that the House could not pass the bill so the world economy now has fear coming into play. I want to remind you that this is the best time to be a trader as the volatility becomes high and profits can add up quickly. The system will look to sell any attempt at a rally. If the Bill does pass it will only allow for a rally that could be sustained until some time after the election only. The market is long overdue for a sharp correction. We still have a little over 2,000 more points to go on the Dow before a bottom can be put in. Make no mistake - WE ARE IN A BEAR MARKET! This market could last for atleast 10 years depending on how fast the Fed makes a decision to allow the markets to trade normally without Gov't intervention. The more market manipulation by the Fed, the longer the market will take to sell off and recover. The more Fed intervention, the harder the fall in the market. I could say a great deal more but I will not bore you with any more details at this time.
If we don't close the upgap today, that would make an island reversal, which is a very strong change of the tides signal and would go just fine with my dragon pattern....
Remember classic big range day can drag the price of next day to its 50% price area. For ES it is 55 today. Edit: It is also overnight high area.
there is a possibility that the 1136 trendline area could get massaged and hold for a major support,we'll see in about a week to 10 days