I only took one trade today on the /ES as I had more important matters to attend to, but I must say this was one of the most high opportunity trading sessions I’ve ever seen. The market took on a lovely rhythm and formed a near-perfect sine wave across time and price.
We opened right below key resistance at 1697.25, price stalled out a tick below at 1697 soon after the open as sellers aggressively reacted by rejected the perceived premium priced into the market overnight. After reverting to the mean, the momentum of the sellers was enough to press us deep into yesterday’s session where we saw an aggressive entrance by the buyers only ticks above the low volume node highlighted as support in our morning report.
At these lows, the volume delta gave us a wonderful shade of red indicating heavy volume being done on the bid by either panicked longs or very aggressive short sellers. Their combined activity, I believe, and the quick reversal put many participants in the hole. Then heavy volume rolled in, but price was stabilized and the traders down in the hole acted like combustion inside a rifle barrel. Their rush of trades propelled the market at a high velocity. Five handles of progress was made in an hour’s time and then seven more taking us right back where we started.
May there be many more days like this, in a time where I’ve committed my full attention
Check out the morning report where these levels were highlighted as opportunities
http://www.youtube.com/watch?v=hVFgkirUakM
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The great thing about the market is that there will always be another opportunity.