Below you will see the published updates from the Market Dimensions Advisory showcasing the positions that were executed following the MDA SnapShot levels that were released from today’s session. This content is from the “Trading Updates/Recaps” that go out to MDA Subscribers. If you would like to follow these trading alerts in real-time, receive them in your inbox and have the ability to speak with me, you will need to subscribe to the newsletter and become a client of our firm. To get these updates sent directly to your inbox, please SUBSCRIBE HERE. To see ALL MDA published updates (trading recaps, daily levels and educational trading material), visit the MDA BLOG PAGE: HERE.
Published 3/9/16 9:28 am central – Notification of entry and the EIA report
We got short @ 1986.00 we are getting some momentum behind our shorts right now. I would recommend looking to take partial profits if you are trading multiple lots to reward yourself on this short trade near the recent lows we have seen if possible. The overall risk on the trade was roughly 6-7pts so if you were to take 6-7pt profit it is a 1 to 1 risk reward scenario. If you are holding multiple positions and take off profits here you can look to keep the risk level the same 1992.50 level to see if we can make new lows on the session and look to challenge the 1968 levels.
There is an EIA storage report at 9:30 am central that could cause oil to move either direction. Make sure to keep an eye on that. It has made a new high with-in the last 30 minutes and I think that is what has held us from making new lows on the day. So if that is bearish and oil sells off I think we are positioned well. If you see oil shoot higher, you may want to just take whatever profit you can on the short and wait for the dust to settle and then try playing the 1986 sell again if we move higher.
Short @ 1986.00
recent low @ 1981.75 +$212.50 before fees.
Published 3/9/16 10:38 am central – Explaining results of EIA report – Educational review of the trades
I wanted to highlight the movement we saw right after the EIA storage report and show why it is important to be aware of these reports and use correlating markets to help you change your trading bias on the fly. With the ES you often can’t just set it and forget it. The below email and screenshots are how I like to handle positions going into reports and this is used to be an educational piece. It is impossible to communicate all of these moves via an emailed newsletter. I tried tipping cards on what I would be thinking and hopefully people were able to follow. Most likely many people read or miss the updates and see them after the fact. If that is the case and you are trading these markets. I suggest you start working with me directly. I convey these thought processes and ideas to my clients over the phone mid session or during after hour times where we can chat further at length.
There is a lot of information on the charts, so hopefully this email and the charts explain my thought process and what I was thinking going into the report. I included a 30 minute as well as a 5-minute chart so you can better track the price movement during the report release. If you would like to talk about this further feel free to contact me directly.
I sent out an email update about our short position before the 9:30 report, letting followers know we got short @ 1986.00 we had a recent low @ 1981.75 was unable to break that zone so was looking to take partial profits there or around 1982.00 the market was giving chances to get out at that time. My thought was to take a little of the move if you had multiple positions. adjust stop to break even for the report. If it was bearish reaction we would be sitting nicely to ride it down. If bullish reaction get out and see how high we go on the stock side.
The report itself was bearish with a higher build than expected, but the oil market reacted bullish to it and crude shot higher. You need to be able to watch other markets at the same time as your current positions. There was a bit of a lag and it gave us a chance to get out scratch or better on shorts. The ES began to grind higher and then caught some momentum hitting 1991.00.
I highlighted in my email that if we move higher wait and see what happens to see just how hi we go. Then look to sell the 1986.00 level again. This is what happened. Crude shot higher, the stock market grind higher over the next 15 minutes and then began to slowly start selling off and hit the 1986.00 sell zone and proceeded to move with momentum and making new low shortly after.
When trading a fast market like this you need to trail stops or take a profit that you are comfortable with as volatility can cause it jump right back up. It was an exciting 30 minutes needless to say especially when you are able to capitalize on the right play.
Below I am showing the 30 min chart so you see the levels as well as the 5-minute chart which better shows how the market reacted to the movement of the EIA. It is key to trail stops or take profits at levels on moves like this because the ES market is trading @ 1989.00 again. and crude oil is back above $38
30 Min SnapShot chart Highlighting EIA move: (Click for larger image)
5 Min SnapShot Chart highlighting EIA move: (Click for larger image)
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