Let the Fed Games Begin
Today’s session was fairly simple as it was
just a continuation of yesterday’s bull sticksave at the 1985 support level
along with the hourly extreme oversold signal confirmation. The overnight session
sticksaved at the 1HR 20EMA support and had a huge bull engulf with the 3AM
candle that made a higher high of 2024. That pretty much sealed the deal as a
double confirmation for the immediate target of 2030-2035 from last night’s
report. Before the day session had opened, the immediate target was fulfilled
and our extension target was at 2047.
During the day session, the morning consisted
of consolidation and the standard 15m 20EMA bull sticksaves that eventually
fulfilled the 2047 target around 1PM. Remember, our standard margin of error is
two points for ES. We then initialized a
swing short at 2042 and 2045 for the next target of 2017-2022 with a hard stop
at 2054. Overall, it was a boring session for those that did not have positions
overnight as it was just a huge gap up and consolidated.
What’s next?
Daily closed at 2037.5, this is back above the
100SMA but still below all the other moving averages.
The
immediate target from last night and the intraday extension target were both
fulfilled, but our stance still remains the same. We are treating any bounce
that remains below 2054 as a deadcat bounce and the intermediate roadmap is
still looking for the double top confirmation with a daily close below 1998.50.
Currently, the immediate target is back to the
2017-2022 support by 12PM tomorrow.
However, tomorrow is also a Fed day so most
likely there will be a huge price swing after the 2PM announcement.
Our current plan is to trade from 8AM to 11AM
tomorrow then sit back and relax for 3 hours of a possible 5 point rangebound
shakefest to frustrate new traders. Afterwards, see how 2PM shakes out and look
for a high probability trade or just skip the day after 11AM. A lot of the
successful day traders we’ve spoken to either reduce their size in the
afternoon or cease trading altogether to avoid being shaken and trapped by the
wild whipsaws. This is also known as one of our strategic holidays that we
teach our beginner students.
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May the odds be ever in your favour :)
