Two Morning ES Trades: +6.75 points ($337.50 per contract)
All professional traders know over 70% of market volume is traded by computer algorithms. This means that the “old-school” approaches to trading are no longer working, i.e., chasing the market, cherry picking, and subjective guessing. I think to stay competitive in 2012 traders need a rules-based, mechanical approach. Otherwise, you’re just guessing.
New traders usually ask us, “How do you manage to get in at the bottom of a move and get out close to the top?” We don’t always get in and out at the “best price”, but we’re looking to capitalize on the biggest portion of a run in price. In other words, we’re looking to get in the market along with institutions and computer algorithms. Then, we want to sell to retail traders who are getting in way too late.
Morning Recap:
Futures were looking pretty ugly in the pre-market, with the ES down 11 points before the open. So, with the overall market sentiment bearish, I was on the prowl for longs.
Why?
Well, what’s usually popular in the markets is wrong. And about 8 minutes after market open we had a long signaled with great reward-to-risk available. We quickly saw the buying pressure building, which gave … Read More
Why Higher “Average True Range” Makes for Great Day Trading
When the ATR (Average True Range) is low, that indicates there’s lower volatility. And when there’s lower volatility, we typically see less intra-day trading opportunities. But when the ATR starts to pick up, we can see more ‘emotion’ in the markets, which leads to greater trading opportunities.
Yesterday the ATR on the S&P 500 e-mini crossed over the 15 mark. And as you can see below, volatile price action correlates with the higher ATR. Even though the average volume is below 2M contracts, our average trades per day has been steadily increasing. And as long as we stay above 1,330 on the ES the bull market will still be in tact. However, if we fall below 1,330 we can see the potential to crash down to the mid 1,250′s.
This morning we saw some great long opportunities in Oil and the ES. We’re 2 for 3 right now, and the momentum looks to be slowing down for lunch…
Major Selling = Big Profit Potential (04/10/12 Mid Day Update)
As you probably already know, we’ve been looking for some strong selling to come into these markets sooner than later. And today we got it!
After breaking some key areas in Oil, S&P 500, Russell 2000, and other indices, we got a massive sell-off. We’re “wholesale momentum traders” looking for short-term moves in the market, which means we see a lot of available profit when the markets go into “panic mode”.
Check out this video to see what happened and the opportunity we had so far today…
Market Forecast For 03/30/12
Oil futures got destroyed today… And we had some nice trades in line with the strong down trend…
Even though the stock indices (like S&P 500) were choppy in the morning, it broke out into a nice late afternoon trend to close the gap from yesterday.
How To Predict Volatility – And The Best Market Conditions For Day Trading
It can really benefit day traders to have an understanding of what’s happening on a longer-term basis in the markets. Not only can you gain a sense of volatility and market direction, but the bigger picture can help you predict what type of trades you might see the next day. In other words, bigger time frame charts can add to your trading edge, but you shouldn’t let a long-term bias take away from what your intra-day charts are showing you. After all, the most important information is what’s current & relevant to the live market.
The Best Market Conditions For Day Trading
We typically find the best market conditions for day trading when there’s high volatility. And when fear or panic is present in the markets, we typically see the highest number of trades and bigger average winning trade size. Now, the markets are cyclical and switch between periods of trending, consolidation, and even erratic oscillations that don’t make sense to most traders. In the video below you’ll see a few tools to help us anticipate volatility and market direction
How To Trade In Less Volatile Market Conditions
Day traders can see nice intra-day trading opportunity, even if the … Read More
How a Big Head & Shoulders Created Great Intra-Day Trade Setups
After a pretty big gap down overnight, we saw some rangebound trading in the early morning. Once we broke out of the early 3 point range, we got 3 beautiful setups with the increased volatility for a max profit potential over 7 points.
It’ll be interesting to see if we break the 13800 area overnight or pre-market. If we do, I could see the S&P 500 e-mini slamming all the way down to test 1370. However, we’re still in a major bullish trend, and I wouldn’t be surprised to see buying pressure after the pop we just had off of 1383.
ES & CL Trade Opportunities (and live market analysis Wednesday)
After a big gap down this morning, the S&P 500 slowly ran back up to close around the $1,400 level. Oil was nice and volatile like usual.
Tomorrow at 1:00 PM EST we’re doing a live market training session and demonstration of the MAP Trade Signal Software.
Click here to reserve your spot – https://eminiacademy.omnovia.com/register/83641332165448
+4 point e-mini S&P trade in 20 minutes
The volatility looks to be picking up in the stock indices lately. And the e-mini S&P 500 was no exception this morning. Within the first 20 minutes of the day we had a beautiful trade setup that offered about 4 points in available profit potential.
Join me this Wednesday at 1:00 PM EST for a 1/2 day trading class to learn about our trading strategies and see them in real-time. Just click here to register: https://eminiacademy.omnovia.com/register/83641332165448
Fed Day Trading Wrap up – Massive Buying Volume
Today we had more buying volume on the ES (S&P emini) than we’ve seen since November, 2011. Most of the buying pressure came after the FOMC announcment, and a slow trading morning.
The e-mini Dow (YM) and e-mini oil (CL) gave us a beautiful trend with some setups in the morning.
Fed Day Market Forecast Video
Today was a little slow on the E-mini S&P, but the E-mini Nasdaq (Symbol: NQ) gave us some great opportunity. And tomorrow’s a fed day, which means we expect it to be a little slow in the morning, then possibly get some nice setups after the FOMC Announcment at 2:15 PM EST.
So, we’re gonna be doing a live webinar Tuesday at 2:00 PM EST to look at the markets and talk about “how to compete with trading algo’s in 2012″. This class will fill up quick so go ahead and RSVP, and make sure to show up on time - http://eminiacademy.omnovia.com/register/49651331574183
