I think this is the first time ever since we started posting example trades that I do not have an example trade for the 2nd day in a row. Today was quadruple witching with experations of stock index futures, stock index options, single stock futures, and stock options all on the same day. This can lead to unpredictable movements in the indexes as institutions rebalance their positions. Today’s institutional activity was not as high as yesterday, but market volatility was very low until the breakout to the upside late afternoon.
The ES opened in the DTG 1325.75 level and price made a clear double bottom about 5 minutes after the cash open setting the low of the day. Unfortunately, the order flow gave no clues as to a market turn leaving me on the sidelines. I posted in chat “I’ll be looking for a trade this morning, then most likely be starting my weekend” and “I’m expecting a relatively low volatility day.” Well the volatility was certainly low and I stopped looking for trades around lunch time as the ES was still working a 6 point range for the day. In mid-afternoon, price did break up but given price had consolidated all day and the unpredictable nature going into options experiation, it was best to stand aside and not take a trade.
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