09/27/2012 Example Trade

Spain’s new austerity measures pave the way for additional ECB bailout money and quickly fueled the US markets higher shortly before noon EST today.  The ES had spent the morning meandering around the DTG 31.50 level before the news broke.  The news sent the into the DTG 38.75 level where it bounced off the back before resuming it’s upward treck.  No order flow entries developed in the DTG 38.75 level.  A couple hours later, the ES broke to new highs again; this time into the DTG 42.25 level.  The next rotation up provided a short opportunity as explained in the annotated chart below.

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