(See Above) We had an active day with the System issuing 8 Trade Alerts. We opened with a relatively narrow Morning Quicksand Zone which ran from 2100.00 to 2104.25. About 15 minutes into the session the buyers got control and popped the price out of the zone at a semi-steep angle. The Momentum System issued a counter trend short at 2107.75 which got us a couple points of positive traction to the downside. The System picked off that reversal within 2 ticks of the high… not a bad way to start off a Monday morning. The remainder of the day the system kept trying to play the market long as the buyers held us above the morning quicksand zone for most of the session. The market was never able to ignite into a full-scale uptrend though. 5 out of the 8 trades got you to a guaranteed 1-Point Delta Target but we got exposed to a bit more negative traction, i.e. drawdown, then normal so it made getting the trades off the launching pad today tricky.
(See Above) Very little solid price action passed through the market today. The system caught the first and best action of the day as the market busted an early move above 2112.00. The momentum continued to the upside but was weak and price action slow so it was difficult to maintain the positive traction. The markets didn’t give anyone much to work with today and faded into a whimper at the close.
(See Above) The system was able to catch an early morning price thrust just minutes after the open for 3.25 points of positive traction. A 2-contract scalp trade the way we play them captured +0.75 and +1.25 for a quick +2.0 points. The up move ended up fizzling and the market sunk back into the morning quicksand zone. Just about and hour and a half in the sellers tried to break the market to the downside and the system issued a short at 2112.00. What looked like a really nice breakout to the downside turned into a nasty short squeeze that spiked back against us for a full stop-out. If the short is too obvious we get a high concentration of short sellers coming in at that area. The short ratio basically overwhelms the actual sellers. When the down move begins to falter, the shorts begin to scramble and buy to cover to cover creating a sharp wave of buying pressure that pops the market back against us. The actual points scored ended in the negative.
(See Above) Today was contract roll-over day and I sent out an early morning warning through the E-Mini Desktop Alert Software, “Trade Super Light or Not At All” The contract rollover days Thurday-Friday usually are not the greatest days to attempt to trade and many traders simply take these two days off and come back the following Monday. You can see all 3 System Alerts failed and hit full stop-outs. The only way to deal with a day like this is to go for quick 2-tick delta targets to help you play defense. The market stayed locked up tighter than a drum the entire session.
(See Above) Today was one day after contract roll-over day and I sent out a 2nd early morning warning through the E-Mini Desktop Alert Software, “Trade Super Light or Not At All” The contract rollover days Thurday-Friday usually are not the greatest days to attempt to trade and many traders simply take these two days off and come back the following Monday. The system issued 1 Short Alert on a break-down attempt by the sellers which quickly fizzled and got squeezed right back against us for a full stop-out if you took that trade.
(See Above) You can see from the graph above, the closer we got to contract roll-over day the weaker the system performance got. The market simply clams up and become erratic and undependable around contract roll-over. If you skipped Thursday/Friday, you had a flying chance of finishing the week slightly positive or at least around break-even. If you traded right through the full week you most likely ended in the negative. There are certain days of the year it is just better to take off and do something else.