Market is showing strength now since rallying out of the nonsense that we have traded in for the past week. There are good resistance levels at 1078-1080, 1084-1086, 1098-1100 and 1118-1120.
We could be looking at the beginnings of a rally to 1120, so you can't get overly ambitious on the short side here. You have to plan for the possibility of trading back over the 1100s.
It is likely that we will consolidate now for the remainder of the day, so don't expect any large moves from here (though you never know with this market, we could finish the day by trading down again, but doubtful in my eyes).
There will be opportunities for short entries. Because of the underlying market strength, you have to be conservative in your targets. I will be looking for, at most, 5 points per short at the moment. We will wait for the market to reveal its hand as to when it will be a more opportune time to go for a more significant move to the downside.
We have to watch how the market trades at 1079-1080 to see how that resistance holds up. I'll come back with more thoughts as things progress. In the meantime, if I take any trades, they will be in the comments here.
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Short at 1078.75
ReplyDeleteWill not defend this short beyond 1081. If we break 1081, I will be looking to short again at 1084. Not ready quite yet to begin a longer-term scale in short.
ReplyDeleteNot looking for much here and won't hold it for long, would like to get a couple points here... I still think we will see at least slightly higher highs today...
ReplyDeleteTarget now at 1075 or I will look to exit if we tick back to my entry
ReplyDeleteOut for a scratch
ReplyDeleteThey got me to cover on that one as it looks now that we are going to trade down to my target. Going to stay flat for now, don't love buying the 75s at this point...
ReplyDeleteI exited my scalp short too early. Profiting on these scalp trades is very important as they provide you a free stop later on when you want to enter a longer-term type of trade.
ok, so we made the new highs as I expected, you could take a short here at 1080, but I will be on the cautious side today and look for another small breakout to 1084 before I get short... still have to be careful, on days like today, you often don't see any down-ticks and make a new high into the close...
ReplyDeleteThe 1080 short would have worked for 3 points and as you can see, we are now making new highs now into the close. Didn't like the short at 1080, because it would have been a guess to assume we would get the down-tick before making a new high. Nothing to do here... I will look to possibly short the market when the Asian market opens if they don't buy it up further.
ReplyDeleteIn this original post, I failed to mention additional resistance at 1089. Its really just a big resistance range between 1080 and 1100, but 1084 and 1089 are important levels to watch...
ReplyDeleteEventually I will be looking for a move back down to 1070. The question is, will we get to 1098 before we get to 1070? I'd rather not begin scaling into a short here if I can begin scaling into my short at 1098. I may consider scaling in at 1089 with the first entry and then 1098 with the second entry, I just don't want to act rash here. So, I think I will just be scalping for now, not ready for a scale in position yet...
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