(See Above) Today we had a bang-up day of pinball like price action for most of the session. In the trading action we experienced several nice winners but also took some heat on several of the trades and caught one full stop-out. Four of the trades got you to a guaranteed 1-point delta neutral target.
(See Above) We had another day of pinball price action. On the charts you will see numerous 5-point thrusts in both directions interspersed with choppy range bound movement. I joked in the market commentary that today was a lot like playing Rugby in the mud… sloppy but fun. The first 3 trade alerts we aced without much of a sweat. Things got a bit sloppy on trade #4 where we caught a full stop-out. The final trade was a counter-momentum trade that would not have filled with a limit order at 2066.25. The high was 2066.00 and since there are numerous ways to play off the counter trend shorts many traders were able to capture several points of movement off of that system trade alert. The first 3 trade alerts got you to a guaranteed 1-Point Delta Target.
(See Above) Today was Fed day so we typically see some initial movement after the open which then gradually dies down to a crawl as the market clams up waiting on the announcement due out at 2-3 pm EST. The buyers grabbed control early on and broke price out above the top of the morning quicksand zone which was running at 71.50. The system got us long just above that at 72 for a quick scalp trade. The buyers kept up the pressure and the system signaled long again in the same area after a pullback off the first move higher for a 2nd Scalp Winner. The longs found themselves hung-up around the 74 level being suppressed at 75.50. The system issued two more longs with weaker results as the buyers basically fizzled and retreated on their push higher. The 3rd trade was a scratch basically around B/E while the 4th trade led to a full stop-out if you took that entry and held. Experienced traders know that Fed Days usually get real dull before the announcement with lots of sudden volatility after the announcement is made, so it ends up being best to make your points early in the session and up shop. The first 2 trade alerts got you to a guaranteed 1-Point Delta Target or no-lose configuration. The final trade if you took it was a full stop-out unless you scratched it first.
(See Above) Today we experienced a super high traction day. You can see from the graph above that we had very little draw-down on the signals and every trade got you to a guaranteed 1 Delta Target as long as you got in within a few ticks of the alert price. We had a 0.5% gap down in the equity market at the open today due to a steady stream of pre-market news. It looked like for a time we were going to get a “Gap and Go” move as there was heavy selling pressure for the first 1-2 hours of the session. The system kept us short for most of the early morning. About 2.5 hours into the session, the market cemented in a bottom and began a retrace up into overhead resistance climbing back into the Morning Quicksand Zone which ran from 2051.50 to 2055.00. Later the buyers were able to break us out of the top of the quicksand zone and then the system caught a night solid long move at 2056.50 that resulted in 6+ points of positive traction. Today was the 5th consecutive day of selling in the general market and it was due for a bounce. In the end we got a near perfect V-Reversal pattern on the intra-day chart if you include several hours of pre-market data.
(See Above) We opened up to an inside day in the equity market after Thursday’s long range bar. Today was options expiration day and so for the first 45 minutes we experienced some very choppy-jumpy price behavior. The sellers initially took control and dropped the market outside of the morning quicksand zone which was running at 2066.00, but soon got stuck in a congestion area between 62-66. Like a seasoned baseball player the system waited patiently for just the right pitch and then swung issuing the short at 2064.00 at just about an hour into the session. The market waffled around our entry point for only about a minute and then we experienced a rapid, parabolic 6-point watershed sell-off. Price eventually made a full 10.5 run in our favor before turning and bouncing back hard. As we close up shop early on Fridays (System runs for first 2 hours unless we are in an obvious rip-roaring trend in progress), that was the only System Trade Alert that we played today.. a beautiful hard line drive into the center field warning track and a perfect way to finish up the week on a high note.
(See Above) It was a week of High Positive Traction for us. Other than Wednesday, which probably ended up being a wash for most of us, the rest of the week gave us ample opportunities to capture multiple points per day. On Average, the system signals exposed us to a 4-1 positive to negative tick traction ratio for the week. Your job as an individual trader is to develop and hone your Trade Management skills to the point where you can capture as much of this positive point traction as possible.