Discretionary Trading
Now Reading
We Have Got Movement
95

We Have Got Movement

by The MoleSeptember 9, 2019

With the summer vacation season more or less behind us we are starting to see directional movement in several major verticals. Equity futures finally managed to burn through overhead resistance, and notwithstanding non-stop bearish reporting in the financial MSM, are heading toward a retest of their all time highs. So if you were trading the per news last week you are going to feel it in the groin region come the opening bell.

With a historical Sharpe ratio of 0.53 week # 37 certainly puts the wind into our backs for this week. But let’s not get complacent for we have three more weeks of seasonal drag ahead of us.

With all the BREXIT drama and the ECB interest rate decision a good amount of volatility is pretty much baked in.

Last week we actually exceeded the expected move by about 10 handles and I wouldn’t be surprised if we would do the same this week. So I suggest err on the cautious side with your respective projections and when it comes to setting your stops.

ES 2950 is where the short term bearish case died. Great spot to be long as well as the upper range was nicely defined. There is a small possibility of a retest and if it happens I plan to grab a long position.

BTW, if you bought long calls last week you will see your premiums drop due to a crush in volatility. If in doubt simply play a call spread which mostly  inoculates you against vega and theta risk.

More market analysis and setups below the fold for my intrepid subs:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator