The choppy price action that I am expecting for the month of July has begun. This morning the S&P 500 Futures are already trading down 30 points from the Friday morning highs. I exited my swing long position at the close of trading on Friday as I will be expecting opportunities to be both long and short in the coming weeks.
Following the disappointing Employment Report Friday morning, the ES dropped more than 20 points within 5 minutes. That was a pretty extreme move and showed that the market was vulnerable following such a swift run-up. Traders were far too ready to take profits.
I have entered a cautious stance looking forward through the remainder of July. I will be expecting choppy markets as I watch for signs on how the market will trade heading into the fall.
There are several themes that could play out in the coming months. I have some concerns that the market could actually head down to lower lows this year before reversing back upwards. I will describe some of the reasons for this in my next post... For now though, I will be looking to buy dips and sell rallies as the market will likely see a choppy July
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Long ES at 1320
ReplyDeleteLooking for 10-12 points on this trade...
ReplyDeleteTaking a little heat on this position, but the market may have just bottomed for the day with a low on the ES at 1314.25.
ReplyDeleteI have a price level lower that I will add one contract if necessary.
Sell ES at 1318.50 for a 1.5 point loss.
ReplyDelete