Now That Was Fun!
I sincerely hope at least some of you pulled the trigger on that TF short yesterday as we have already reached the 2R mark within just one session. Boy, I wish it was always this easy! I’m actually pretty jazzed as we’ve been trading along each swing of the tape and it looks like this is going to be a good Christmas for us steel rats.
Once again it’s time for a bit of position maintenance. As we dropped below the 2R mark today we are faced with two options again – I’m certain by now you know the drill but just in case:
- The TF closes below 1103.8 and we move our stop from 1,134.4 to 1103.8.
- The TF closes above the 2R mark (i.e. 1103.8) and we close out our position a minute or so before the bell.
The E-Mini meanwhile is back at its 25-day SMA and that one has held up just fine over the past week. Will this time be different? Not sure but it’s probably not a bad spot for a small long position with a stop below the 25-day SMA. Besides there is this:
Remember the EUR/JPY – E-Mini correlation? Seems like that the former is disagreeing with the plunge in equities today. Not a reason to go long by itself but given the 25-day SMA support I think it gives us another reason to risk a small speculative entry (perhaps 1/4 R – 1/2 R max).
Alright, I dug up three very juicy futures setups tonight. We are on a roll – so let’s get to work!
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