Market sold off down to key support on Friday afternoon. Stocks are currently trading up ahead of Monday's open. Some positive news this morning showed that retail sales came in higher than expected for the month of October. However, surprisingly weak manufacturing data out of New York outweighed any positive sentiment and some selling came in right at the 1202-1203 resistance level (ES).
I have a bullish bias heading into this week. 1192-1193 remains key support on the ES. I continue to be a buyer in the low 1190s. As the week progresses I will be looking to buy the down-ticks.
Levels to watch today (ES):
support below at 1197-1198, 1192-1193, 1187-1188
resistance above at 1202-1203, 1207-1208, 1212-1213
One possible scenario that could materialize this morning is that we see some selling after the opening bell. A solid strategy to consider would be to wait for gap fill below 1195 and then look for buy entries. Like I said, I like buying the low 1190s...
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1202-1203 is now support. Long entries look pretty good. Just be careful. Only considering scalps right now...
ReplyDeleteLooking to get long at 1199
ReplyDeleteScratch that idea for now, didn't tick down to fill me, if ES ticks back down to 1199 now, it doesn't look like such a good trade
ReplyDeleteShort 1202.50
ReplyDeleteLooking for a couple of points here. If ES ticks up to 1204, I will look to exit this trade
ReplyDeleteCould have taken 2 point profit, but decided I would hold this trade and see if we can get some further selling. It is a free trade at this point, if it comes back to my entry, I won't defend it...
ReplyDeleteCover at 1197.50 for 5 points
ReplyDeleteLooking to get Long at 1195-1196
ReplyDeletedont rush into a long at 1195-96, could get down to 1193'... waiting, watching...
ReplyDeletedollar making new intra-day highs
ReplyDeleteSupport may very well hold here, but I'm not taking a trade unless it ticks down lower... dangerous time to trade in last 30 minutes
ReplyDeleteI'll look to get long ES in after hours trading down around 1193
ReplyDeleteI entered a swing long trade on the SPYs at $120.01
ReplyDeleteAll levels are lining up nicely. Dollar is hitting nice resistance which should result in some selling of the dollar and in turn we should see a nice run up in equities. This is why I will be looking to get long on ES and why I entered the first position of swing long entry on the SPYs
ReplyDeleteAlways must be cautious. Interesting to note that buyers did not come in at the end of the day today or last Friday. Shorts aren't covering their positions into the close either. This could be perceived as negative in terms of future direction of price. However, even if selling does occur, and a position goes against you, the likelihood is very high that you will be able to get out at breakeven when price retraces back up to your entry. And most likely, it will continue higher. It will only be negative if ES closes the day below 1193. Only if that happens will I look to exit longs.
ReplyDeleteI never did buy ES at 1193. Had I entered long though, there was an opportunity to exit for break-even before the market continued down further.
ReplyDelete