Teach Talk Trade S&P Futures E-mini Day Trading & Technical Analysis

ES (E-Mini): Spinning Top.

The E Mini was down today. After a strong up day yesterday and mid day today, the markets posted supply and demand pictures that imply a turn or at least a pause while it ponders the situation.

The Daily Swing Trades have not been triggered today, the high was 971.25 and I had a Swing Short at 973.

Today the record was 3-1 in called trades. There were 4 trend trades, 0 counter trend trades and 0 scale in trades. Trading 3 contracts, one would have had a profit of $300.00 following my trade management.

Subscribe to the Mechanical Monkey ( my Swing Trading System ) to get the daily swing trades on the ES as well as Equity calls for the NASDAQ.

The StoRSI, our momentum oscillator, momentum oscillator, closed near its upper trigger level. This high reading suggest or signals an end to the upside momentum. Price could consolidate from this area, due to the oversold bought conditions in the market (which has caused momentum to indicate a neutral to overbought conditions).

The T8 which is trending downwards since August 20 or so and now is leveling off. There is plenty of room between price and the level trending T8 for a retracement. The market could easily consolidate back to the T8 exponential moving average before it encounters further resistance. The T8 is our preferred exponential moving average and it dictates our thoughts on the direction of the trend.

The candlestick formation  posted today was a “spinning top”. The body of today’s candle was inside the body of yesterdays candle. Many times, this formation leads to a reversal in trend. Confirmation must take place tomorrow but any extensions of the wicks to the upside gives us another hint that the market could begin to move down.

***Volatility Alert:

During the third week in July, volatility returned to the major stock indices. For approximately four years, the markets have had low to very low volatility. This significant change has ushered in swings of 100 to 800+ points, sometimes on a day-to-day basis. Stock indices tend to be either volatile, or not, for three to five years at a time. Expect continued volatility. The current volatility cycle has just started its volatile period. We feel this is the early stages of volatility and we continue to believe it is here to stay.

Please take advantage of the FREE Morning Call where Uncle Mike discusses Dow and & subscribe to my Swing Trading Subscription The Mechanical Monkey where we discuss our mechanical trades in ETF’s, E-Minis, NASDAQ & Solar and Alternative Energy issues.

I have a new software product for Tradestation users, My Trade Assistant, it is an Indicator Add on… check out the!

Uncle Mike

PS. Check out our “Trade As A Business” course ( www.teachtalktrade.com/business_plan1.html) as we will be starting a new course in the comming weeks. Email um@teachtalktrade.com for information.

 

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