Dec 212012

trade 121221

Interesting day…  Boehner’s Plan B vote was scrapped last night causing a change in trader expectations and the ES took a tumble of over 50 points to bounce off the December lows.  It quickly rebounded 30 points where it worked the prices between the S2 and S3 pivots for much of the Globex session.  Coming into the cash open, price had just dropped to the bottom of the DTG 16.75 level.  There was a pullback and then a low failure attempt at the bottom.  This was the first order flow trade opportunity of the morning, but it was quick; so quick that by the time I started typing into chat price had moved out of the entry area.  It turned into a good trade but one had to be quick to capitalize.

Price quickly reached the DTG 21.50 level where it showed several short entry opportunities.  The ES was in a light volume, whippy mood where price was moving easily up and down 6+ ticks.  While working the DTG 21.50 level, Boehner gave a press conference which made any short trade a coin flip.  Once Boehner was done saying nothing new, the buyers took control which scratched or stopped any short trades.

Once price bounced off the DTG 28 level, the retest failed to retake the highs and order flow was saying sell.  I have to admit, I didn’t see that short opportunity.  I had in my mind to look for a long continuation opportunity on the retrace into the DTG 21.50 level.  The order flow and price action never setup for that long opportunity and meanwhile the short from the DTG 28 level would have worked great…

The ES worked it’s way all the way back down to test the low of the day where it gave the cleanest order flow opportunity of the day and today’s example trade.

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