Here you will find the most recent trade update released today in the Market Dimensions Advisory. This update is showcasing a MDA SnapShot New Entry in the E-Mini S&P Market. To get these updates sent directly to your inbox, please subscribe for free HERE. To see all MDA updates visit my blog page HERE.
Published 2/19/16 7:50 am central:
Our negative outlook from yesterday carried over into the overnight session with the market making new lows @ 1906.50. This could also be on the heels of Crude selling off from its recent pop. Needless to say, the market was very reluctant to go below the 1917 level and when it did it wouldn’t carry too much momentum with it. So perhaps with less market participants in the overnight the buying support just wasn’t there and caused us to breakdown further than what would of occurred during the day. Regadless, you have to respect that move and if crude continues to breakdown we will keep moving lower. The big number in my mind is the 1900.00 level. Will this line hold if tested once or twice. A bet going around the office today is if we will close the session above or below 1900.00 seems like we have votes on both sides of the fence. I think it will come down to the close.
Looking at the 30 Minute SnapShot, you can see its a tight range and all the volume over the last session and overnight is at the 1918 level. we also see on the Market Action Scanner, that 1918 is the weekly POC. So the market is comfortable here at this price longer term until we get some deviations higher or lower. This most likely will be news based or if another market like Crude sells off or goes higher. So I think we could be a little range bound today at the moment, unless we start making new lows on the open we could look to challenge the 1900 level. If short, I would consider partial profit taking the first touch. In the event it holds and we rally back off. You can always get short again. If we break through you could still have partial position, but I think we will get some good support for a while at that price.
On the Market Action Scanner you will see a few things. we are breaking below the 60 min boxes as well as the 240 min boxes, but both of these boxes are very close together. So stops should be somewhat close but think targets should be similar. We also see that the ES Odometer is still bullish green on 3 of the 4 time frames but less bullish than yesterday. so the negative overnight and end of yesterday is a factor but not enough to switch over to red quite yet. I think we really need to break 1925.00 with some momentum for us to get back and hold the 1930’s pricing. I think there could many stops at this price so could spike at first and would look to buy on the first retracement down, if we that scenario happens.
Feel free to reach out to me to discuss this further or other markets using these same tools. I have the ability to use the same analysis on all markets. I just happen to showcase the ES market at this time for this newsletter.
30 Min SnapShot Chart: (click for larger image)
Market Action Scanner: (click for larger image)
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading. Market Dimensions Advisory – Free Edition includes an email newsletter subscription. 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!
Subscribe to Market Dimensions Advisory – Free Edition
Market Action Scanner
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
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.