My refrigerator picked a good day to die; what a mess a melted freezer full of ice and food makes… As I scrambled to deal with the cleanup and with the pending repair versus replacement analysis, a quick review of the Globex action and potential news for the day told me it was either going to be a down day or a quiet day. There was no major economic data to give the markets any direction. However, the Eurogroup was meeting today and any announcements made could inject some unplanned volatility. Also, it’s less than 3 weeks until the US federal government automatic spending cuts kick in. Little progress has been made to control the cuts. Thus as the days move ahead, comments out of Washington will come back into focus and most likely add volatility.
I did not take any discretionary trades to day, thus I get to act as an armchair quarterback for today’s example trade. Only two DTG levels were touched and the entire days range was 5.25 points, thus there wasn’t much opportunity for any trading. The first opportunity was a move down into the DTG 11 level which included a bounce off the pivot point. Details are in the annotated chart below.
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