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Home / Futures Blog / Buying a Sell Day in the EMini S&P – January 17, 2018

Buying a Sell Day in the EMini S&P – January 17, 2018

January 17, 2018 by Scott Hoffman

In yesterday’s blog post I wrote about a short sale trade in the EMini S&P (read that here). This was based on the ES being in the Sell Short day of the Taylor Trading Technique (TTT) cycle. Yesterday’s afternoon’s recovery meant I labeled today the Sell day of the cycle. However, unlike the label, the TTT Sell day was an opportunity to go long today, which worked well.

I labeled today a Sell day because the market both sold off and then rallied yesterday. A Sell Short day is usually followed by a TTT Buy day however a Buy day is predicated on the market closing near the bottom of the daily range in the previous (SS Day) session. Tuesday’s relatively high range close meant we would anticipate a Taylor Trading Sell day for Wednesday.

EMini S&P - Daily

The Sell day of the TTT cycle is really a misnomer of sorts. From the name, you would think a Sell day would be a day to short a market. However, Taylor’s “play” for a Sell day would be to sell out of long positions that were purchased on the previous, Buy day. If I’m looking to trade a market on a Sell day, I’m looking for a resumption of a rally, especially in a bullish market. The strong up trend in the ES and the fact that there was a lot of room from the Tuesday close to the Tuesday morning high made me interested in going long today.

EMini S&P - January 17

In this morning’s STI comment I wrote that I would be looking for a rally on a move above 2790. The midpoint of yesterday’s selloff was 2789, I rounded this up a bit to use as a pivot point. This is the Fib level I pay attention to – if a market moves above a 50% retracement level then it’s likely to move back to where it started. This jibes with the TTT, with the Sell day objective being a rally to the previous day high.

The 8:30 AM open was below 2790, and it moved back above 2790 just after 10 AM, which triggered our long entry. From here it moved higher over the session, reaching our 2808.50 (Tuesday high) objective just after 2 PM. Today’s high range close gives us a Taylor Trading Sell Short day signal for Thursday, although I’m a bit leery of the short side given the strength of the uptrend.

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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.

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.

Filed Under: Swing Trader's Insight

About Scott Hoffman

Scott graduated from the University of Chicago in 1986 with a degree in Economics. After graduation, Scott worked on the floor of the Chicago Mercantile Exchange then moved upstairs, serving as the personal broker to a former chairman of the Chicago Board of Trade. There, he worked as a broker and margin manager, starting up the firm’s full service brokerage division.

Today, Scott serves as an educator and mentor for new traders, and as a trading partner and ally for experienced traders. The breadth and depth of Scott’s knowledge make him the “go to guy” for both retail and institutional traders.

Scott also publishes two futures advisories, Swing Trader’s Insight and Trade or Fade. He also writes the futures trading blog at www.futuresinsightblog.com. Scott has written articles for a number of futures publications and has done numerous futures trading seminars, including seminars for both the CBOT and CME.

Scott offers his customers the knowledge he has gained from his more than 25 years of experience in the futures business. Scott is accepting new clients at this time.

Scott lives in suburban Chicago with his wife and three children. In his free time he enjoys coaching his children’s sports and various other athletic activities.

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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.

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.

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