Afternoon,

First off, before I get to the update, I had an interesting question from Ephraim that I thought you might like to see. Here is the question and my answer.

Hey Ron,

Do you treat the 1st hour high and low the same? Do you consider both of them a big support/resistance level?

A:

Hey Ephriam,

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Morning,

I received an excellent question from Marty that I wanted to share with you. Here it is:

Ron,

Does the Russell 2000 e-minis chart tend to follow a more predictable daily trend pattern with “obvious” set-ups and buy/sell points than the charts, “trends”, and set-ups from basic stock trading??     By ’Basic stock trading’ I mean picking a stock(s) from a current strong sector (i.e, energy but not financials) and the stock/company has good fundamentals (i.e., strong EPS, P/E, ROE, low debt etc.) and the trader uses solid chart set-ups & buy/sell points to make a move and buy a stock but STILL an apparent “good/solid” trade turns into a loser. The reason is because if the NASDAQ is down and negative economic news hits the streets then the fundamental and chart techniques don’t mean anything. A good stock goes down. Ya know what I mean? Again, are the Russell 2000 e-minis charts, trends more predictable than trading a stock in the stock market?       

I read your daily reports and its amazing the success rate you have i.e., winners everyday with only a few losers. Are the emini’s easier to trade? Your thoughts, advice,  recommendations are appreciated. Where do I locate the daily ticker for the Russell 2000 e-minis?    

Sincerely,

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Afternoon,

Wow, what a weird day. I guess with oil hitting a new high, the market was a bit more hurky-jurkey today. There were 5 valid set-ups today, 3 winners and 2 losers. Yes, all strategies have losses. Luckily for us, they don’t happen very often and are controlled with proper money management. Here are the charts for the first and second half of the day.

First Half

Click on chart to enlarge.

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