Rolling Equities Into 2017

Equity futures are rolling into March (H7) on Thursday and thus we should expect an increase in volatility for the remainder of this week. For us traders more volatile tape means we will need to be extra conservative with our position sizing and optimally add a few more ticks to our initial stops. 

Short term we seem to be primed for a more active session as most Monday jump higher (in realized volatility and in price) has been digested overnight and placed us once again at the bottom range of the RV cycle range.

The E-Mini is gyrating higher ahead of the open and I will wait for a bit of weakness to get positioned on the long side. My preferable entry zone is around ES 2204 (2198 on H7) or lower until about 2002 (2196 on H7). The initial stop loss will be 5 handles from my entry point which places it squarely below 2200 (or 2194 on H7). If you want to be extra conservative place it below the SMA at 2197 (or 2091 on H7).

However my most productive equities setup today I reserved for my intrepid subs:

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Campaign Updates

it seems Ms. Market is in a good mood as several of our open campaigns are now progressing nicely. The British Pound futures or GBP/USD have continued to push higher since last week and is now heading toward its 100-day SMA where I would expect a bit of turbulence. I’m moving my stop to < 1.27 which locks in about 1R in profits of stopped out. Humble beginnings only as I believe this one has more space to run if it manages to break daily resistance. What works in our favor is that the 100-day SMA has not been tested in ages and may just be ignored.

Silver is slowly progressing as well and here we can now advance our stop to slightly below 16.7. As you can see we are also heading into daily resistance on this one as there are is yet another Net-Line Buy Level ahead of us at 16.945. If breached and held it should put us on the the path higher.

Soybeans are in a pretty similar position having pushed higher and now approaching overhead resistance on the daily panel. I’m moving my stop here to below 1040 which locks in a bit of profit but hopefully leaves enough room for the gyrations I’m expecting near the upper 100-day BB and those NLBLs.