It was an unexpected trend day as I believed coming into this morning that the initial euphoria over ECB stimulus had played itself in yesterday’s large 31 point ES move up. Not to be out done, today had a range of over 32 ES points. Coming into the cash open, there was keen institutional volume and ES was showing signs of topping at it’s premarket high. Not wanting to miss what I thought would be a high probability gap close back into yesterday’s close, I took the short opportunity. It panned out for small target models but price turned back up well short of yesterday’s close.
The cash open found the ES back in the DTG 62.25 level where it had been grinding pre-market and with the 9:55am EST Consumer Confidence report, price began it’s ascent. My outlook at this point was still bearish and I had framed the day’s high at 65.50/68.50 which on this rare occassion did not align with RG’s published DTG levels today. Price bounced off the R1 pivot creating a non official short opportunity (non official since the area was not a DTG level), but I was confident in my high frame and the respect that pivots have been getting over the last couple months and took the opportunity. Price started to consolidate and didn’t move far enough for me to capture any profits. After 40 minutes of grinding, price broke up into the DT68.50 level setting up today’s first official DTG short opportunity which after another 40 minutes of grinding, also broke out to the upside without enough movement to bank small target models.
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