I warned in chat this morning that today will most likely be a quiet trading day.  The Italian Prime Minister resignation news took the markets down overnight and provided hope for some volatility into the US market open.  Thus the trading strategy for today was to find a trade early before the volatility died.  The ES moved into the DTG 17 level early and got slammed with institutional selling around 1418 with potential trapped traders above.  This was an aggressive short opportunity early.  The ES volatility soon died.  The buyers made an attempt at a break out and then the sellers made their attempt.  The trend into the cash open was up and after the sellers failed to take price down on the break out, the probabilities favored a continuation up so it was best to scratch any short trades.  Eventually, the ES did break up and setup a nice looking short opportunity which is today’s example trade. Continue reading »