Sunday, February 8, 2015

Week in Review.

So today im going to do a review of the week. Just going over the days in terms of the trades at the zones that were available pre market and how they were possible to trade intraday.

 So Monday our B/B zone was 97-99 and Below this we were looking for  82-80. ES opened at 95.75 and tested 97-99 within the first 5 minutes to give us a short opportunity. On the open i like to look at ES on a much shorter Time Frame to give me a read and the potential to get in with the internals confirmation. With regard to targets for trades I like to judge this based on the intraday profile alongside the previous days.
Next, We were looking at the 80-82 zone as being a potential breakout area with caution on the long side below it. Any Trades from this are on the long side would have needed a very good intraday setup as was said in the plan. I personally use a combination of market internals to judge if im going to trade at an already tested level and at the time of testing 82 on Monday the ES looked weak so there was for me no setup here on the long side.
The next untested zone we had on the way up was 02-04. Which due to the nature of the zone and where ES was coming from to get to that zone this was an automatic short area on 1st test, ES then reacted and retested in a short time giving internal confirmation on 2nd test which gave extra clarity to the trade.

Tuesday we opened at 25.25 and drove quickly up without testing the 21-23 B/B Zone, So i saw no real opportunity to get long here, On the upside we had resistance at 33.75-35.75, when we hit this resistance ES was a good short opportunity as it was a 1st test and also market internals were showing an exhaustion up here. Es then returned to the B/B area. On first test of this area ES had a buy signal but this wasnt a strong buy signal given the context and so a trade here may have been riskier than normal even with the rotation it gave, however on the second test of this zone ES looked like the shorts were running out of steam so i buy here with tight stops below the zone would have been a good entry.

Wednesday ES opened at 34.50 which was right in the bull bear area of 33.5-35.50 and drove up. However i did not see a great time to buy this early on day on a smaller time frame. When ES dropped a second time to the zone we had internals showing us an exhaustion so a buy here would have been a good setup with tight stops below the zone. The potential risk to reward at this point was heavily weighted in the favor of a buy with 46.25 being the optimal upside target pointed out pre market. When ES did reach 46.25-48.22 we had an automatic short here as it the first test of the zone in the RTH session and ES gave to the tick rotation here back into value. Given the daily profile context on the second test of this area i was inclined to think ES was going higher, however the greece news broke and ES got hammered back to 2030. Without this news i think the ES would have broken out above 48.25 and given the action in the Globex session that followed that news ES did go on to break higher.

Thursday ES opened at 44.25 and drive higher towards 53-55. This was an automatic short on first test and gave a little rotation back into value around 49. With ES building Value within the zone for a long time, i looked to the internals as confirmation for a push back to value when in this trade. That gave me the confidence to stay in. However on a subsequent retest of this level moving away from value another short was not a good trade idea. So only the 1 trade idea from thursday,

Friday ES opened at 61 and tested 65.25-67.25 resistance. Which was an automatic short on first test, We then rotated to a key inflection point on the daily profile at 63.25 and continued upwards to 68 just outside the zone. Dependent on your trade management this could have been handled by scaling some around the key point at 63.25, moving your stop to BE here or just letting the trade run for bigger targets resulting in a potential tick out and drop. Personally i like to lock in some profit quickly at key areas and then add that back in on subsequent tests if the market allows with the internal confirmation. ES then reacted on first test of 54.25-52.25 and gave us a trade setup back to t tick to the RTH Vwap which is a good measure of value for a day where the Value in skewed to one side like friday but gets rejected.

Hope this recap was informative, any questions hit me up on here or by email. The feedback on the poll is currently fantastic and these are the sort of daily recaps that would be posted. Any other things you wish to have in the potential premium service just drop me a note.

Thanks again.


  1. It would be great to have a chat room where we can interact with you during market hours. Thanks

  2. Possibly a private chatroom for everyone to talk in real time about potential setups according to the levels and trade plan?

  3. Many thanks for the review! It was great!

    Monday - Could you share where the 1997-99 level came from?

    Could you describe what internal exhaustion is/ looks like. What internals are you using?

    Daily profile context... I assume you me the shape of daily profile as it develops in terms of accepting higher/lower, making weak highs/lows, making D,p, or b patterns, how value is moving? Anything else important?

    On Friday there was a good test and rotation off 65-67 in Globex. Does this influence "automatic" type entries or is the RTH the only "real" test.

    I hope you can still post your daily really sets the context well.


  4. Hi,

    If you have time can you answers these questions? Thanks,David