T3 – Trading-The-Trend Market Recap & Outlook
The Market Big Picture
Good trading is always going back over the trading WEEK and taking a step back to see where the market is situated. This allows for a higher probability on an intraday setup knowing that overall market direction is in a particular TREND. It’s your patience and discipline that will continue to grow as a trader when you implement such tools.
Looking at the week behind…..
1 month down. Whew. What a ride it has been. After three weeks of selling, the market on Friday found some lift after consolidation at the lows.
Tough week with FOMC minutes, GDP and some big econ numbers that kept the market in some choppy waters. Market appears technically in limbo. While there are always ticks to be made on some nice intraday swings, we remain in a daily/weekly/monthly trend downside and the short term pic is neutral. Surely doesn’t do well for any long term positions. Daily gaps/open VPOC’s remain above and below – all viable targets on any given day. Fridays session appeared to be the breakout of the weeks consolidation,with it being the end of the month perhaps a contribution.
Highlights of the week continue to be the 50/144ema chart that has guided the bigger trend in conjunction with the other charts. Whether it be a downside or upside target of choice, the T3 cross in conjunction with the 50/144ema continues to be a force to contend with when wanting to remain in the trade for the long term. No guarantees of hitting targets far off everyday, however the highest probability entries and trade management gives you that chance.
Looking at the week ahead…..
Futures indices now rallying upside with plenty of room to move and close out upside open gaps and points of control. By no means does this indicate that the market may not drop back down as well. We continue to close out previous days open gaps below which for the short term shows technical bias of support and no return as of yet.
For the long term pic, markets clearly remain in a downtrend. Short term pic has approached a bearish /neutral position on the 4 hour charts to the 144ema which can go either way. Decision time this coming week. Crude finding support at the 144ema with no indication of a downturn to continue.
It is the overnight sessions followed by the intraday pic that will guide us to close out upper levels and with that will eventually turn the long term pic or simply turn back down.
Caution to the wind Jedi traders as to which source you receive your market outlook as at the end of the day, it is merely a flip of a coin as to who will be right and who wasn’t as to the course of direction of the market in the week to come.
Your safest bet? Follow the momentum on any given day.
Until then, always ready in both directions.
Trading Room Futures Index Focus of the Week: NQ
Video Link to Trading Room member Ed C.’s “Using Levels to Project Targets”
One Simple Strategy. ANY market. ANY chart. ANY time frame.
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