Feb 132013


There was a lot of uncertainty going into this morning’s cash open.  We had Retail Sales and Import Price reports pre-market which both came in slightly bearish.  The DOW 30 cash index had cleared and kept 1400 yesterday and the ES was perched slightly below it’s all time highs at 20.50.  There are no historical volume profiles or price swings for us to develop structural resistance levels above.  As I wrote in chat this morning, if the reports did not beat expectations, I did not expect price to move any higher than 1520 to 1523.  Thus I’m thinking short coming into he cash open.  The ES formed a double top before the cash open and the opening volatility shook out.  Shortly after, the ES made it’s attempt to break through the 20.50 all time highs.  The move looked like a retail mouse trap as institutions sold the high and retail bought above.  The example trade opportunity turned out to be a little early as the buyers continued to try to push higher, but eventually they gave up…

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