Here you will find the most recent trade levels released today in the Market Dimensions Advisory. This update is showcasing an MDA SnapShot levels with potential buy and sell zones for you to consider executing on the day. If you would like to further discuss these trades do not hesitate to contact me directly. If you are not getting these updates sent to your inbox each morning, please subscribe HERE. To see all MDA updates (morning & intra-day levels, trade recaps, educational material) visit my blog page HERE.
Published 3/30/16 8:05 am central:
We saw an outside reversal day higher yesterday, based on the dovish comments made by Janet Yellen during her speech about hiking interest rates. The equity markets were positioned to challenge recent lows when they just appeared to be getting stonewalled, and shorts accumulating. When her comments were released equities popped higher and didn’t budge or retrace back for new entries. As noted earlier in yesterday’s report, it is important to be ready for such events or have stops in place if/when you are looking to have positions on when there are scheduled reports or news events. The buy zone we highlighted seemed to be a great entry price for those who were looking for bullish opportunities and for those who were short based on the sell zone, it allowed us to get stopped out before the major pop higher, so potentially let us cut trades short before they could have been 10-15 pts against you.
Looking at things today, we are 11+ pts higher in the ES market, and bulls are in control across the board on the market action scanner. If we do see selling opportunities, realize you are going against the grain and may not see the strong momentum behind the position. If we do get short, I think we have a tough time getting through the 2050-2046 zone. This is where the weekly POC is and the Daily Top. On the bullish side, we are hitting new highs for the year. Bulls are looking toward that Dec 30th Swing high @ 2067.75 as well as looking to push longer term to the 2095 weekly Top level. Market Action Scanner SP Odometer shows all time frames Green Bullish and we are above the Top zones on 3 of 4-time frames.
Looking at the 30 min SnapShot chart, we see that we have a very tight zone pressed up on the highs here. With zones this tight, it is easy for a price to bounce between each zone and easily stop you out. So if you are taking the long or short position you need to be comfortable setting your risk accordingly and perhaps extending by a pt or two. That is your call. If we do break lower I would look to target 2050. On the upside, keep an eye on oil and if that is staying bullish. If we make new highs and grind higher it cold be a slow move so be patient and update risk accordingly. If trading multiple positions do not hesitate to take partial profits or scratching trades, it could take some time to accumulate shorts and squeeze them out. Depending on one’s risk level, if you are looking for swing positions. I do think we retrace back to the 2050 level this week. So if you are looking for short term top, this may be a potential spot.
30 Min SnapShot Chart: (click for larger image)
Market Action Scanner (click for larger image)
Economic Calendar: Video on how to access on dt pro: https://vimeo.com/160017837
Subscribe to Market Dimensions Advisory
Market Dimensions Advisory - Get Inside the Mind of Commodity Market Professional Andrew Pawielski! The Market Dimensions Advisory leverages Andrew’s own live trading and a career of working directly with professional traders, commercial clients and institutional business. This deep understanding combined with countless hours of technical market analysis have made Andrew proficient with trading execution and the trading process.
Market Dimensions Advisory includes an email newsletter subscription.
Market Action Scanner
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CONTRACTS CAN BE SUBSTANTIAL. THERE IS A HIGH DEGREE OF LEVERAGE IN FUTURES TRADING BECAUSE OF SMALL MARGIN REQUIREMENTS. THIS LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU AND CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.