Feb 252013


As I posted in chat this morning, we have a few wildcards coming in this week with the Italian elections, the automatic spending cuts which go into affect on Friday, and Bernanke testifying to Congress tomorrow and Wednesday.  Given that lack of economic numbers today, I came into the morning expecting the bulls to try to push higher.  That did turn out to be the case initially and is reflected in today’s example trade.  The ES had rallied up into the close on Friday and continued during the Globex session.  Price pulled back soon after the cash open and unfolded into a long opportunity.  Unfortunately (for me), the early trade allowed me to shift my focus on to trading system analysis work.  I knew before lunchtime that trader expectations were potentially changed with rhetoric heating up over the spending cuts (Obama had a short speech) and the rioting in Italy over the elections.  This meant a potential for a down trend.  I can kick myself for not catching part of it…

Edit: Wow, I just posted the price level recap for today and I couldn’t believe it; 13 DTG levels were reached today.  I had no idea because I only had 5 levels drawn on my chart and price pushed them out of view.  This sort of trend day does not come along very often…

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