Today the eMini NASDAQ futures were on the Sell day of the Taylor Trading cycle (it was a Buy day if you use a strict day by day account). Regardless of which day it was on, early weakness represented a good buying opportunity.
The Naz had a huge selloff on Friday, breaking out of the sideways channel. It did manage to recover some late Friday; this recovery led me to label it a Taylor Trading Sell day, viewing Friday’s recovery as a de facto Buy day. If you stayed with a strict TTT cycle count today would be a Buy day. Regardless, the ROC indicator (bottom panel of the chart) was on a buy signal, giving some confidence in a potential buy.
For a TTT Buy day we use the previous day low as our reference price; we would look for an initial move below that level as a signal to look for a potential buy; we would then look to go long when the market rose back above our reference price.
The 8:30 AM open was 5687.00; the market quickly moved lower from there. It broker below the Friday low around 8:35, making a low around 8:45 before turning back up. A rally ensued, and our long trade got triggered around 9 AM.
This was followed by a sharp morning rally, reaching a session high of 5716.75, a rally of 56.50 points from our reference price. Trading turned choppier from there. 5675 was the midpoint of today’s rally; I like to use 50% retracements to gauge whether a market is likely to reverse (rally in this case or continue in the direction it had been heading (lower, in this case). 5675 ended up holding as support and the market trended higher over the afternoon
Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
Risk Disclosure
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
