The Cyprus situation was still unresolved and would become the focus for today’s volatility. During Globex hours, prospects for a bailout before the ECB imposed deadline were looking good and the ES was trending up. At the cash open, price continued to push up and as I posted in chat, my thought was to be long on a pullback into the Globex high of 44. The ES did pullback and institutional buyers were starting to get interested, so I got on board. Unfortunately, by the time the pullback chart bar closed, selling had taken back over leaving no clear visual for a long order flow opportunity. Price was whippy as Cyprus information swirled and 6PF bars were being created in minutes, not a good situation to be reading order flow. The 6PF chart shows a potential order flow short in the DTG 45.50 level while I was hoping for a better long order flow opportunity (for today’s example trade post). Given the market volatility, I did not like the opportunity and I posted my reservations in chat. However, once price reached the R1 and I could take some risk off; I thought a short opportunity could work. Price double topped in the DTG 49 level and order flow unfolded nicely for today’s example trade.
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