Apr 042013


We had monetary policy announcements from Japan, England, and the ECB overnight and pre-market.  The announced Japanese stimulus provided some fuel for a Globex rally.  The BOE and ECB left policies unchanged which didn’t provide much to move the markets.  Jobless claims came also came in meeting expectations.  In chat I posted, “after yesterday’s big move down and in line expectations from the news, we could be looking at a ranging day…”  That’s pretty much what we go.  The huge DTG 49 level basically contained all the price action of the day.

Coming into the cash open, I was expecting a retest of yesterday’s lows before the market would move much higher.  This kept me flat footed as two long opportunities unfolded and I found myself sidelined as the ES rocketed to the other side of the DTG level.  No opportunities setup on the high side before price tumbled back down to the low side where again nothing other than some potential trapped traders tipped off the potential turn.  On the next rotation down, we finally got some bottoming action and a long opportunity unfolded during the ensuing consolidation at the DTG level bottom.  Unfortunately it did not work as price searched for a lower bottom.  However after the new bottom a second and better opportunity became available.  The two opportunities make up today’s example trade.

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