One look at the chart above and it’s easy to tell what type of day the fade traders had. Not one level during the cash trading hours provided enough rotation to capture any significant profit. The opportunity of the day turned out to be pre-market in the DTG 89.25 level near yesterday’s low price.
The bulls continued their slow progression upward on negative economic news. The 10am EST consumer confidence number was dismal, but the market has the Fed meeting on it’s mind and bad economic numbers could mean a dovish Fed. Today’s example trade opportunity unfolded soon after the consumer confidence report. There was some questions and discussion during chat about the opportunity, so I thought I would document it in the annotated chart below.
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