Jun 282013


The Federal Reserve has released an army of Governors and Presidents to give speeches that try to undo Bernanke’s disastrous press conference of last week.  The strategy seems to be working… Dudley, Powell and Lockhart gave speeches yesterday that seemed to calm the markets.  Today there are more by Stein, Locker, and Williams.  However, first thing is first…  There were several economic numbers released this morning including the Chicago PMI and Michigan Consumer Sentiment, both in the in the first 30 minutes after the cash open.  There was an aggressive long order flow opportunity after the open from the DTG 1600 level.  We’ve been having good luck with first trades this week so I thought it was worth a shot.  Unfortunately, volume was very light and noncommittal as the reports were pending which turned the long trade into a coin flip.  The Chicago PMI missed and Consumer Sentiment beat estimates.  The ES net reaction was down…  The coin came up tails for that opportunity…  Next the ES dropped into the DTG 94.75 level where institutional buyers were heavily defending the S1 pivot at 1596.  A couple long opportunities unfolded as explained in today’s annotated chart.

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