Week 6 RECAP

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. You are recommended to make appropriate inquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any reference published here. Past performance is not necessarily indicative of future results.         


Looking at the week behind 1 day @ a time….. 

Good trading is always going back over the trading WEEK and reviewing the setups that may or may not have worked out and what kept you in or perhaps took you out too early. Looking for the trend move and remaining in the trade is the objective. It’s your patience and discipline that will continue to grow as a trader when you implement such tools.

Markets 

  • YM, ES, NQ (RTH), CL, GC, 6E, 6J

*Results will vary for each individual trader based on market entry/exit and/or live versus simulated environment. 


TREND Charts of the Week 

Looking for the chart of the day means looking for what I call the Golden Setup or simply which chart had the highest probability of price action running in TREND. Whether it ran 20 or 100 ticks, it’s the patience to wait for that setup and trust the entry. This is what I strive each day in the market to wait for in each of my setups.

highest-probability-setup

  • Great examples below of how with ALL charts in sync and price action  with the 50/144ema cloud, a higher probability of momentum following through in TREND 

Daily Recap/Outlook Videos: 

Recap reflective of highest probability setups based on price action crossover of T3-50 and 50/144ema cloud with 1 of 4 possible trade management setups and exit strategies. Market order entries/exit will vary whether simulated or live for each trader. All setups are called out on real time charts in a screenshare room and randomly posted online.

———————————————–

Week 6 Outlook

Did you remember to breathe last week as instructed in last weeks outlook?

Without a doubt it took a lot of patience in week five as a vast amount of data was tossed into the market place to digest one day at a time. Unless you learn to be patient, disciplined and follow your trading plan, the volatility alone would have chewed you up and spit you out. However, if calm and collected, the market served you well with pockets of trend and for the fortunate globex traders, came out way ahead! I know, can be very frustrating entering into a day session after an incredible overnight run, to only chop and pullback on every trend that looks like it’s about to run away.

If you are a follower of my blog, articles and/or daily charts, you are aware of what a high probability setup appears like when price is in momentum. You may also be privy to what it takes to ride a momentum wave once in it. The key for every setup is hoping this is the one. However hoping is not a technical indicator and thus a solid trading plan including a trade management in place to be ready for both directions intraday. 

Being ready for both directions seems to be the ever growing sentiment in the INDICES as an increasing amount of investors in the VIX etf’s pile in and pessimism continues to build as stated by a most recent data poll by AAII.  With market euphoria continuing to hold at new highs and earnings that appear to be doing well, it is no wonder that the interest has peaked that we are in a state of market decision and direction. For the intraday trader, you may wonder on any given day if there are any traders left in the market as volume seems to come to a dead stall for hours. Rest assured, they are there, but with precise timing continue to drive this market in one direction. Permabears are hurting some and can’t wait to hit the flush button but until that moment, we hold the course.

On the economic front for week six, we ease back from last week and market is able to digest the recent data and new earnings coming out. Surely the push up on Friday of the non-farm payrolls was the catalyst the market needed to regain the upper levels. Technically on the charts, we are at a pause from previous highs and without any defining news moment out of Washington or the world at hand, we have room to move up. To the downside continue to monitor the VIX open interest strike prices of 21-23 for Feb15 which may lead the market for a pullback in the next two weeks to key lower MMl levels and open gaps. Watch those first 2.5 hours of the US session, and ONLY use the PM session to manage your earlier entries.

the-bottom-line

Technical momentum probability CONTINUES to remain at this point to lead us a bit higher on the indices “with caution” on the bigger pic in my humble opinion if all things remain constant and nothing occurs to shake things up downside as stated over the last several weeks. At this point it won’t take much! I state with caution as seen in the charts below we are at a technical momentum decision time as we were last week based on my strategy that puts price action in a stall at these levels. 

No harm in holding here as we regained some footing upside after consolidation and rest assured, I will be ready to alert of the change in trend or continued movement upside. 

———————————————–

Monday

Chart of the Day

2017-02-06-nq-euro-close

  • Markets
    • Indices hold just above daily open
      • NQ leads the indices upside
    • Crude/Gold movers of the session 
    • VIX closes out @ 11.37
    • Core Sector List: 11 in the GREEN; 14 in the RED
    • Marketbreadth primarily flat
    • Cumulative Tick index remained in the red
  • Economic Highlights
    • Labor Market Conditions: Increased
  • News
    • Draghi hints Trump will be responsible for next financial crisis
  • Charts
  • Overall Indices Trend:
    • Globex: CHOP/DOWNTREND
    • US Session: CHOP/UPTREND 
      • ES FLAT

———————————————–

Tuesday

Chart of the Day

2017-02-07-cl-trend

  • Markets
    • Indices continue GLOBEX drive up through AM session 
      • Divergence of market internals vs price momentum in AM session
      • PM session turns downside
      • NQ forms new open gap downside
    • Crude drives down further
    • VIX closes out @ 11.29
    • Core Sector List: 20 down, 5 up
  • Economic Highlights
    • International Trade: Decreased deficit
    • Consumer Credit: Decreased
    • Disney Earnings: EPS up/ Revenues down
  • News
    • Political confirmations
  • Charts
  • Overall Indices Trend:
    • Globex: UPTREND
    • US Session: FLAT

———————————————–

Wednesday

Chart of the Day

2017-02-08-6e-globex-and-us-open

  • Markets
    • Indices Mixed
      • NQ leads back upside; closes out open gap
      • YM FLAT; ES CHOP 
    • Crude /Gold rallys up
    • VIX closes out @ 11.45
    • Core Sector List: 19 GREEN/6 RED
  • Economic Highlights
    • EIA: 3rd largest BUILD in 35 years
    • Intel to build new complex
    • GS pulls London firm back to US
  • News
    • Anti “Ivanka Trump” campaign
  • Charts
  • Overall Indices Trend:
    • Globex: DOWNtrend
    • US Session: ES/NQ Up; YM FLAT

———————————————–

Thursday

Chart of the Day

2017-02-09-es-trade-management

  • Markets
    • Indices rally up with YM/ES dragging NQ
      • YM/ES form open gap below
    • Crude closes/forms Open Gap
    • Gold/Yen Down
    • VIX closes out @ 10.88
    • Core Sector List: 17 UP; 8 RED
  • Economic Highlights
    • Jobless Claims: Lower
    • TWTR: EPS inline; Earnings miss
    • KO: Quartley earnings inline; guidance misses
  • News
    • FED’s Bullard – Only 1 hike needed in 2017
    • Trump meets with Airline CEO’s
    • POTUS Trump says huge tax announcement coming in 2-3 weeks
    • FREXIT?
    • Jeff Sessions sworn in as AG
    • East Coat – Major Snowstorm
    • Dakota Pipeline to be in service <90 day
  • Charts
  • Overall Indices Trend:
    • Globex: UPtrend
    • US Session: UPtrend

———————————————–

Friday

Chart of the Day

2017-02-10-6j

  • Markets
    • Indices rally up
      • NQ slow to start; YM/ES lead
      • Crude gaps up
      • Volatility on JPM/POTUS News conference 
    • VIX closes out @ 10.85
    • Core Sector List: 15 UP; 10 Down  
  • Economic Highlights
    • Consumer Sentiment: Decrease
    • ECB to discuss QE in mid 2017
  • News
    • Japanese PM meets with POTUS
  • Charts
  • Overall Indices Trend:
    • Globex: CHOP
    • US Session: UPtrend

Recommended Viewing for February

  • Continue 2017 by finding a good video on Trade Discipline.

chatwithtraders

Website


One Simple Strategy. ANY market. ANY chart. ANY time frame.

Manual Cover

e-Manual available on teaching this trading strategy.

Real-time charts shared daily in screenshare room.


Government Required Risk Disclaimer and Disclosure Statement

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s