Easy Futures Investing » Daily Wrap-Up July 2, 2008

Afternoon,

Thursday market hours: 8:30 am - 12:00pm CST due to the July 4th holiday. There will be no daily wrap-up for Thursday.

Value Area for Monday, July 7th: 664.20 - 670.50

Afternoon,

Thursday’s trading session will be shortened due to the July 4 holiday. Trade with caution.

The Russell 2000 opened flat today and proceeded to trade down. There was a trend line break followed by a trader’s trick set-up below the 56 EMA. The time was 9:24 am CST with a short entry of 686.20. The next trade was an IVB (inside vertical bar) back to the 56 EMA, Woodies Pivot and the 50% fib as measured from the TS pivot at 9:03 am CST to the TS pivot at 9:45 am CST. The time was at 9:51 am CST with a short entry of 686.20. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

The market trended down and formed an IVB around the 127% fib area. The short entry was 680.00 with an initial stop of 679.70 (under the bar at 10:30). The time was 10:33 am CST. The trade stopped out. The market continued down and formed another IVB at a double bottom. The time was 11:30 am CST with a long entry of 676.60. Although this trade did make its objective, I decided not to take the trade as my personal rules state that if an IVB is not entered by the 4th bar after the IVB, the trade is killed. You may want to amend your rules regarding this strategy. Here is the chart for trade 3 and 4.

Trade 3 and 4

Click on chart to enlarge.

The next trade was an IVB at the 56 EMA and double top. The short entry was12:33 pm CST with a price of 678.50. The initial stop was at 679.90 ( above the pivot at 12:30 pm CST). The trade stopped out. There was a trend line break above the 56 EMA followed by a trader’s trick at 12:48 pm CST with a long entry of 680.20. The market went up to the 61% fib area as measured from the TS pivot at 9:48am CST down to the TS pivot at 11:39 am CST. That was also at S1. There was an IVB at 13:06 pm CST with a short entry of 681.10. The market went into side ways chop fro the balance of the day. Here is the chart for trades 5 and 6.

Trades 5 and 6 and 7

Click on chart to enlarge.