Blog

Guest Post from Mohan

Site Administrator | July 13, 2012

Responsive image

Special thanks to Mohan from Day Traders Action for the following guest post:

Market Force: Neutral/Bullish. Watch for continued higher move in the markets now with lows washed out temporarily.

ESU12 S&P500 E-mini Futures
Friday, July 13, 2012

Prev Day - SP
Range: 14.50

Value Area
Range: 7.00
TCF Key Numbers for ES
1,346.80 Pit Bull MA
1,335.75-1,334.75 Sell Pivot
High 1,334.50
1,331.60
Close 1,329.20
Open 1,327.50
1,324.60
1,321.25-1,322.25 Buy Pivot
Low 1,320.00

Recap of Thursday's Action:

Good morning and welcome to Friday's trading action.

Well, we got the lower, early dip as expected down to the 1322 support area and a nice rebound off that area.

Indeed, we got the BreakOut of the Hour One highs also as shown on the chart above.

Traders who grabbed the BreakOut trade going long near 1328 were able to scalp a nice run up off that area to 1334 without much pressure on the position.

Today if things go as planned I am expecting a continue higher move.

Odds favor a jump back to the Pit Bull area around 1346 so let's see if we can get em going.

Today's Call & Briefing:

If the market takes off higher early from theOpeningRangethen you probably missed the trade.

That is what the setup appears to be today. IF we do indeed get the higher continuation then today's trade setup is definitely to take the Opening Range Breakout trade.

That means watching the first 5 minutes and marking the High and the Low of that period after the opening.

Then when prices breakout of that High you go long and risk em to just under the lows.

Ideally they will breakout, hold the stop and keep moving higher today.

The close was 1329.20 so if they are gapped up on the open by +8 handles or more then we may just want to stand aside. That would not give a whole lot of room to run the Pit Bull.

However, gamblers may want to shoot for that with prices Opening near 1335-37.00

Any Breakout of the OR above that creates a riskier trade but still worth it.

As traders we always have to say to ourselves my favorite affirmation:

"No Guts...No Glory". Each trade is like that.

Value Area: 1,324.60 - 1,331.60

Holding 1331 the market can climb to the Pit Bull now with the setup I am seeing on the MF Indicators.

Buy Pivot Target: 1,321.25 - 1,322.25

A pullback to this level again suggests the market is still very weak and needs to get pounded to the downside some more.

It appears they are ready to bounce however.

Sell Pivot Target: 1,335.75 - 1,334.75

Trade holding above this level and especially above the 2nd level resistance number of 1340 should get a break out higher at least to the Pit Bull level and maybe beyond today.

10 Day "Pit Bull" Moving Average: 1,346.80

Can they breakout above 1337-40 and run the Pit Bull today?

The Market Force Indicator setup I have says they can and probably will. So let's see how the wind blows today.

Pro Trader's Action

Its the middle of the summer, the markets are active and we could be ready for a July rally here.

If we do get a rally going it may be a good sign to take some time off in August and just get away from the markets.

Many institutional traders and other large size traders use August to get away along with the legal community in general.

Stay in focus, let's see if we can get a bullish breakout today and have a good trading day.

Best wishes always. Mohan

Be sure to join our next Free Educational event with Mohan - REGISTER HERE 

Cheers,

The TradingPub
“Trade, Talk, Learn – Cheers to Success”
Follow us on twitter

Risk Disclaimer: Past performance is not indicative of future results. Futures trading involves substantial financial risk. Views of guest commentators do not represent those of TradingPub.com. Article intended for educational purposes only and not meant in anyway as a solicitation to buy or sell certain securities. Please consult your personal financial adviser before using this information for your own trading purposes.