Monday, August 17, 2009

Good trading on the open, then slow with a few very selective opportunities the rest of the day.

  • The “Trading RM" oscillator is really trying to break the downtrend line. A big move tomorrow will likely see the oscillator start to spike, which is a definite sign the market is loosening and might be time to get more aggressive.
  • “Future(s)” gapped down hard and had the continuation down. Depending on the morning economic news, futures are likely to be flat or gap up slightly to 984. After which, the first move will likely be downward to test today’s lows.
  • “Range” was almost double recent moving average with about 28 handles including overnight futures. Market had a slow grind down on good volume. Overall, the market made a defining move lower through the recent range, which suggests there might be a good amount of downside yet to come.
  • “Going Big” was almost 2:1 weighted to the downside percentage when compared to upside. This suggests market has more continuation to the downside possible off the open… possibly a hard definitive move again, but more likely to be slow and grinding. Be prepared for the morning news to throw a plot twist in the storyline.
  • “Gap DaP” acted how it has of recent when gapping down more than 10 ES handles. If futures traders look to have a flat to slightly up open, market will likely fill the gap completely to today’s lows.

Still August trading, which is usually slower, be nimble.

Good luck and Great Trading.