Today was great. +9.5 pts. And I could have done a lot better. Let’s have a look:
ES RTH Plan: I’m expecting a test of yday high so if I see support I will try to get long. 1320 is key, above it we have another shot at breaking out of the trading range. If 1320 is resistance, then we might go to the bottom of the trading range. As I wrote in my blog, there is a lot of fear and uncertainty and that results in volatility. The market doesn’t know what it wants to do or which way it wants to go.
Opening around 1312 puts us close to the middle of the trading range and I expect 2 sided trade here. I need to see some obvious strength or weakness before I want to enter a trade in this area. If in doubt I’ll be patient and stay out. I do’nt want to get chopped up near the MCVPOC.
So basically between 1320 & 1304 anything can happen and I don’t have much for a detailed plan today. I’m wondering if I should even trade. I have a small win from pre-market and I don’t want to lose it.
More brainstorming: if 1314 is support I’ll look for long for yday high. If 1314 is resistance then I’ll consider a short for 1307.50 CHVN followed by 1304.
Ok, that’s a basic plan let’s see how it plays out. Good luck!
Here’s the chart:
So today played out pretty much according to plan. 14 was resistance, market tested down, found support, rallied. 14 was support and we got yesterday’s high. 14 support again and we retested high. That failed, which was just above my level of 20 which held as resistance. In the plan I said if 20 is resistance we might go to the bottom of trading range, which is around 89. And that looks like what is happening now.
My bias for tomorrow will be bearish if we don’t get a rally into the close. I think the markets may stay in the current trading range until the Greek elections. And then I think we may get an explosive move.
Good luck tomorrow and as Mama Cunparis would say, “Be careful out there!”