The action today was pretty much to be expected. Resistance appeared, with strength, in exactly the spots that I expected. Open the Daily of the ES:
This is a review of what I posted in the past week. Note the resistance band that I have highlighted in transparent red. The last couple of days showed indecision in the center of our down channel. Today, bulls made a run at it. Action got volatile which shows that there are real sellers waiting for these blips. Note how the price action could not reach the upper band - even on the high volume spike that we saw. It was rejected immediately and was never able to recompose. This all happened at around 1080 on the cash index. If you follow the tip of the price spike back in time, you will see how much overhang the market needs to digest. It ain't happening in one shot!
The price settled right back down at the 1070ish level - which will reveal itself as either support or resistance in the next couple of sessions.
This is really a fine trading opportunity. The strategy should be to short the blips at key resistance levels and collect your cash at the end of the rejection waves. One can do this all day and easily make 10-20 ES points in a day.
Cheers!
8 comments:
Hi David , it was wild riding today that is for sure , I expected today ,yesterday .
I am ready for more downside , I would like to take the ABC 535 down off the table.
Good luck out there
Still SLV position?
Hey Paulus,
Still long SLV.
SPX is testing the top trend line of the down channel - if we break, a test of 1080ish is in order with the far side of 1100 possible - followed by another very substantial down leg.
I will exit SLV in advance of that down move.
Traveling again this week - so updates are thin.
Cheers.
Hi David , Im feeling it again , I think the sell off starts again, here we go .
I propose that we are in wave 2 of 3 . But as my alt wave 4 of 1 ,
Paulus good luck out there
My best for everyone , be safe out there David
Dave, Payline
Closed some shorts (30%) yesterday after adding in the morning. Still hold a substantial short only position. Expect some strength to the 85 area and will reshort.
Seeing market action it looks like timing might be a bit too early, still strenght and bulish appetite. We might need more patience. It seems payline is more confident. So I'm might hold it against you ;-)
By the way HMS's blog seems to change to the negative. It seems like dave, payline, fres, quality are there less and more macho tradertalk prevails. While it sometimes looks HMS is right only. Might be just my perception, but what do you think?
Dave have a good trip, safer to make some real cash in the real world than in the uncertain dark
inferno, we call the Market
Of topic, no beach house or Ferrari for me, but I gave myself a little well earned present:
http://www.ridley-bikes.com/pd/nl/nl-be/4/91/cyclocross/X-Night
Have a great trading day!
Paulus I share your perception ,
I got tired of commenting to people that talk trash on Fres , HMS ect ,
We are all just speculating here,
as David would say, I see no room for name calling and negative comments . I am grateful Hms , David , Fres and others for sharing.
Be careful on those new wheels Paulus .
It seems like dave, payline, fres, quality are there less and more macho tradertalk prevails. While it sometimes looks HMS is right only.
SLV is rocking!!
Good call Congrats
Post a Comment