Below you will see the screenshot update to the Short trade we did 2/26/16. We were able to lock in profits on the retracement from the overnight highs. This was a short trade highlighted in this morning MDA SnapShot in the E-mini S&P. If you would like to follow these trades in real-time and have the ability to speak with me about them. Please subscribe to the newsletter and contact me directly. 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 2/24/16 9:08 am central – Fill confirmation and Target 1
Traders,
We were filled on our short positions @ 1956.50. we are starting to see some selling pressure coming out in this market. We are trading at 1953.50. I am looking to take partial profits if we can move down a bit more to the 1951-1952 level. we could see some support coming in @ 1950 and there is a large bid @ 1951 over a 1000 contracts sticking out. so somebody is trying to either spook the market from challenging that or we will get some resistance there. We are against the grain so to speak with what we did overnight so don’t get greedy.
oil is back in my buy support level so if that holds and goes up so will stocks.
Published 2/24/16 11:02 am central – Trade Recap and outlook for rest of session
Traders,
We caught some nice momentum on our short entry and were able to hit our first profit objective. For those who took partial profit and updated your stop on the remaining positions at breakeven. You most likely scratched out on those remaining trades as we did see a retracement slightly higher off the selling pressure. That is why I look to take partial profits on moves and take risk off the table on any remaining positions. In this instance we have since moved back down toward the 1950-1951 level of our exit and trading between that and 1953.00 I was really positioning our remaining positions for us to carry that into new lows and hopefully attack the 1943.00 level we broke out of yesterday. That was my thought process. To bank partial profits on a majority of the position to reward ourselves for the risk and then maybe get lucky if new lows are reached we get a runner and trail the stop down with it. That wasn’t the case today as the remaining positions scratched out, but we were well positioned if that scenario took place, and if we keep this type of disciplined structure to your trading you will be rewarded when those instances do take place, and you will eliminate what looked like a nice winning trade turning into a losing trade.
Since the exit, we have seen some volatility in crude oil. With our sell orders triggering and presenting some profit levels and then new levels forming confirming the downward pressure.
On the ES market we have new levels as well with a sell zone @ 1950 and the buy zone @ 1963.00 I am going to keep a close eye on these, but most likely will not participate on the short at this time unless we see oil break below $33 and we haven’t moved lower yet.
There is a lot going on with the 30 min chart I have updated. You can see our sell and buy, the new zones, as well as the SP odometer I copied in. I pasted this in the chart so we can all see we have been negative since the open, but overall the market is still in bullish territory. These 1950 levels could hold here. I wouldn’t be afraid of buying this and looking for us to retrace back to the high volume level on the day the day near 1956.00 Which is also the 30 min POC I circled the volume on the chart. On the bottom we see TAS navigator has moved lower, but is still green bearish. Overall we are 1.00-2.00 pts positive on the ES. So if you are still short or looking to sell this market now, I would be cautious. I think bulls could potentially surprise some of these late shorts coming in and move us back up.
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30 min MDA SnapShot Chart: (click for larger image)
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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.
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