This morning I covered my ES short from Friday, December contract, for 19.75 points total profit; also covered recent NQ and YM shorts. We’ve been stalking long opportunities since the 2B test of bottom earlier in the day and have nabbed a goodly profit out of the push higher.
The big question here is whether the market will push back into the overhead range. This is a critical juncture. If it does, and holds, then the long game will be on again, and there will be a ton of stocks with buy setups tomorrow; even still, until we see price start to trend with higher swing highs and higher swing lows, we will not rest easily in new long positions.
It goes without saying that you can’t have a higher swing low until a retracement of some sort comes in, and giiven the location of price here, that is likely nearby. Swing traders and market timers wishing to establish new positions that missed the DIA entry on the test of bottom posted in TrendVue Trader Talk earlier:
11:05:22 Mike: DIA swing traders could look to start a new long if INDU can push up here
11:05:50 Mike: And move to a break even stop ASAP off the smallest time frame that allows one to do so under 1 set of higher highs and higher lows.
… now need to look for an intraday retracement off a time frame such as the 10 or 20 minute chart, and buy as price pushes up above that retracement. Tight stops please in the early going.
04.12.09 13:29 #