Dec 072012
 

It was an early day for me as I got my discretionary trade pre-market, fading the Non-Farm Employment which blew away expectations and sent the ES up 14 points.  I had posted in chat and hour earlier my high frame for today: 1419.75 to 1422.75.  The ES topped at 22 and then 22.25 on the retest.  I didn’t have an order flow reason for an entry to post in chat, but the retest of a news spike with a subsequent  failure in my high frame was enough for me.  I did however keep an eye on the charts this morning.  The ES dropped into the DTG 12.50 level before the 9:55am EST Consumer Sentiment report and made a double bottom but the institutional buyers were no where to be found.  After the sentiment news, price rotated up and then down to test the bottom of the DTG 12.50 level where once again there was more selling than buying.  About 11am EST, Broehner made some public statements about the fiscal cliff negotiations causing some short term volatility and a good looking retest with potential trapped traders.  Comments about the example trade opportunity are on the annotated chart.

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