Feb 192013
 

trade_130219

Today surprised me.  The Asian and European sessions were quiet over the US holiday and last night.  We came into the morning with no major economic reports or any scheduled and potential market moving events.  The ES was perched under it’s all time highs which means not market structure above to base resistance levels.  I was expecting the bulls to make an attempt at the all-time highs but without some new information to drive the markets, I didn’t think they could get very high.  Also, the ES opened a couple points above Friday’s close and I thought for sure the gap would be closed.  Well I was wrong on both counts.  The ES had stored enough energy for a technical breakout and a continuous grind up over the day.  The day provided 2 shorting opportunities, the first being today’s example trade.  The 2nd opportunity came late in the day and ended up as a scratch or small loss trade.  From the level recap above, it’s easy to see that any short today was not going to be profitable.  This is the case with the example trade.  However, on the annotated chart below, I labeled several of the many order flow warning signs that the example short opportunity was not working very well.

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