So far things playing out perfectly in line with expectations. ES now approaching target area of 1212-1217. Although there is some interim support now at 1221-1225 that could see a brief bounce higher, expect that support to eventually break down. I will continue to hold shorts until the target area is reached. I will then consider long entries. ES could trade down as low as 1190, but I will look for long entries before that. There may be some good range play possibilities in the 1200-1220 price area as I will look for the market to consolidate there.
These are my expectations, we'll wait for the market to confirm it.
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Verde - What shorts are you continuing to hold? You stated that you covered your short on 12/2/11 at 1257.00 for a loss. You have made no additional "posted" short entries since then.
ReplyDeletehello Verde...
ReplyDeleteHere we are: 1203 is pretty much your call low. I also think it have to rally from here, but it is so erratic...The big players are shaking every longs and shorts: a big move must come out and i suppose it will be on the bullish side. But who knows? We will see.
Ric
the first comment is not from me
ReplyDeleteRic
Anonymous #1... Good point. First of all I don't post all of my trades. I just cannot do it. I try to post trades if they are of the swing variety. However, so much is involved in entering and exiting positions, that often times I will just say I am looking for short entries or looking for long entries if I am biased in one direction or the other. In regard to your comment, I am referring to my 1255-1260 Short call on the ES December contract. I also called the same target short entry in the previous post. I never did write that I took that short. Nonetheless, the calls were spot on.
ReplyDeleteBy the way, these posts are not meant to be advice, they are just Verde's view on the markets. I do so appreciate your post and hope to make my thoughts more clear in the future.
Hey Ric, I did say the ES could hit 1190 and now it looks like price wants to aim for that level tomorrow (Thursday).
ReplyDeleteThe market has not yet given any signal that a low is in. I expect lower lows. I will definitely be looking for long entries if ES trades down to 1190.
By the way, just flew in to Florida to visit family. Lots of distractions, so sorry for the lack of posts in what is a dynamic market environment.
ReplyDeleteThe cool thing though, is that I had wireless internet on the plane. It was the first time I ever traded from the sky... a surreal experience...
hi Verde. It must be really cool to surf the net and to trade in a plane.
ReplyDeleteI m always watching for the rally to continue. What kind of rally or if it will drive the market to over 1300 is another question and now i have no answer for this.
Ric
It was very cool! Now a days if you want to trade, there is always a market open and wireless device to trade it. Its a little scary.
ReplyDeleteRegarding the market: I think unless central banks truly step in and do some form of money printing, we won't see 1300 anytime soon. Right now they are giving the illusion that they will allow deflation to occur. Ultimately I don't think this will be the case and the ECB, the Fed, the Bank of England, Bank of Japan, etc, will step in to "save" the day.
In terms of now, it is a little tricky with the holiday period upon us, but I continue to expect a lower low here below 1200 ES before feeling confident looking for long positions. If ES sees a daily close above 1227 before that happens, I may change my mind and look for longs sooner...