Jul 312013
 

trade_130731

Today was an FOMC announcement day which always makes day trading a little more difficult.  The day can really be divided into two parts; before the 2pm EDT announcement and after.  The world stock markets have slowed down over the last few days waiting on today’s announcement.  The expectations were for low volatility in the first part of the day and then possible high volatility as the markets digest any changes in Fed policy.  The morning started out slow as price grinded in the DTG 85.50 level before finally and again slowly moving through the overnight high area.  RG pointed out in chat that 93 area would make a good short as it is a ‘pre-summit’ area to the 94.50 area which is an obvious resistance area everyone is watching.  The institutions sold the 93 area hard and were being absorbed for quite a while, but eventually they prevailed and price started moving down.  However I was left watching the boat sail away.  The ES did however make a shallow pullback which unfolded into an order flow short opportunity which I detailed in the annotated chart below.

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