A very funky day… With volume split between the ES June and September contracts, it became difficult early to get a read on institutional order flow. We published today’s worksheet using the June contract but after missing the market top off the DTG 34 level and watching volume virtually disappear, I checked the September contract and found 3x the volume. I had to make the switch… The premium difference was about 6 points, so all levels needed to be adjusted by subtracting 6 points. The price level recap posted above reflects the adjustments. The ES had already dropped through the DTG 25.75 level and kept looking like it was forming a bottom, but the institutional buying was just not there. Price double topped on the front edge of the level, but the institutions were not selling, then finally, maybe some institutional buying interest after 30 minutes of trying to move higher. The bulls tried to take price higher and the bears tried to take it lower. Ultimately after another 90 minutes the bears won the frustrating see-saw of hard to read order flow. Today’s example trade took a shot at a long order flow opportunity which did not work.
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