Afternoon,

As I stated in Friday’s post, today was a difficult day to trade. Part of the problem was that the DOW was very strong all day and the NAZ, the ES and the Russell were very weak. The Russell 200o e-mini’s opened flat and traded down before bouncing strongly. The market pulled back to the 50% fib area as measured from the TS pivot at 8:51 am CST to the TS pivot at 9:18 am CST. A IVB (inside vertical bar) formed at 9:12 am CST with a long entry at 739.70. Here is the chart for trade 1.

Trade 1

Click on chart to enlarge.

The market went into a sideways base in between two fib areas. The 61% fib area was from TS pivot at 8:51 am CST at point 1 to the TS pivot at 9:18 am CST at point 2. The 50 % fib area was measured from the TS pivot at point 2 at 9:18 am CST to the TS pivot at point 3 at 10:18 am CST. Here is the chart of that congestion area.

Caught Between 2 Fibs

Click on chart to enlarge.

There was a trend line break followed by a trader’s trick set-up above the 56 EMA. The time was at 11:48 am CST with a long entry of 739.90. Price went up to test the pivot at 10:36 am CST and formed another IVB. A nimble trader could have stopped and reversed the IVB with an exit of 739.90 and a short entry of the same. The stop would have been above the last pivot at 11:54 am CST at 740.80. There was a trend line break below the 56 EMA followed by a trader’s trick set-up. I did not take the trade as it was too close to the support area at 10:18 am CST. Here is the chart for trade 2 and 3.

Trade 2 and 3.

Click on chart to enlarge.

There was another Trader’s trick set-up at S1 that I did not take. The time of the trade was at 13:00 pm CST, with a short entry of 732.10. The price went down and bounced strongly. There was a bobber set-up at 13:36 pm CST with a long entry of 733.10. The price went up slightly and then a IVB formed. Exit was at 13:42 pm CST with an exit price of 732.60 for a net loss of .50 points. The price went down slightly and then had a big bar back to the 56 EMA. Another IVB formed at that resistance area. Short entry would have been at 733.10 at 13:51 pm CST. Here is the chart for trades 4 and 5.

Trades 4 and 5

Click on chart to enlarge.

So for today there were 5 valid set-ups (as well at 2 more that made the objective but I didn’t take because the entry was too close to a support/resistance area) with 3winning trades, 1 break even trade  and 1 losing trade for a net profit of $550, ignoring slippage.

Today was a very difficult day to trade with many cross currents in our fishing pond. I hoped you fared well.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment.