Something rather interesting happened yesterday during the E-Mini session. Granted it was a bit subtle but perhaps some of you veteran subs picked it up as well:
More specifically it’s something I saw on the Zero Lite after I marked a pretty significant bullish signal divergence, meaning price was meandering down while selling pressure was abating. Our modus operandi when confronted with such a divergence is to start looking for price confirmation in order to take out a contrarian entry – in this case a long position. Only problem was – price never budget. Participation continued to contract and then completely flatlined with the tape dropping lower [...]
The price action in equities today reveals renewed imperviousness to gravity which is a bit surprising given the chasm we are facing on the volume profile panel. I am a bit conflicted up here – there are reasons to be bullish and reasons to be bearish.
As a trend trader there still are no reasons to pull positions. But as a discretionary daily trader I am a bit uncomfortable following the bulls higher as we are heading in uncharted territory – and that at the onset of the vacation season when participation is expected to fall.
Let’s take things from the top. The more medium term SPX P&F panel (by P&F standards) shows us a [...]
Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.
I actually meant to post a weekend update but somehow wound up wiping out my Windows installation, thus condemning me to a weekend of recreating my workstation from scratch. Yes, I do backup religiously but my bootcamp partition wasn’t covered by time machine – fortunately I back up my Windows data separately twice a day. As the old saying goes [...]
So far it’s been a great day as we have lift-off on several of the setups I have been pimping here for the past week. Before we revisit those let’s take a quick look at where we are on the equities side:
The S&P E-Mini is pushing its luck by dipping its toe into the large volume hole which terminates near 1594.75. As I’m typing this it has bounced back a little but and I’m seeing some tepid buying interest. Let’s see if they just tried to scare the children – if you put your stop where I told you then you should be in good shape right now as its currently plotting around 1608.
The NQ will have to push above 2936.5 [...]