I will be at the hospital early Wednesday to get poked with needles, so I’m posting this ahead of time to keep my hardcore crew entertained. Unfortunately there’s really not too much to add to Monday’s post at this time. As expected we are seeing a lot of gyrations but without any sense of direction. Is that about to change anytime soon? Probably not.
The volume hole just below ES 3200 thus far appears to be holding up as the first attempt to breach it this morning was swiftly rejected.
Selling pressure after the drop below VWAP increased steadily into the close and participation was surprisingly good given that many participants are on vacation. Normally I would anticipate follow up to the downside here but it’s summer and things can dry up very quickly, so I won’t hazard to make any predictions as to where we head next.
What I do know is that ES 3200 is the big delineator – everything above is gravy and everything below it is chop chop chop till you drop.
I hate to pad my own shoulder as I’m not known to make big predictions but suffice it to say that the current bounce right at the VIX 25 mark isn’t a huge surprise to me. Yes it’s the threshold I have been pimping to my subs for quite a while now – time for you stragglers to sign up! 😉
Alright a few more goodies below the fold for my intrepid subs:
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Some campaign updates: ZB got stopped out last week at the 2R mark. Not complaining but it’s a bit disappointing given that it’s now shooting higher like a rocket. Unfortunately that crystal ball is still in the shop – any day now!
DX continues to go nowhere fast. I’m been as patient as Job on this one – still holding my ISL as the current formation could resolve either way in a sudden explosion.
Trading futures contracts takes a particular mindset as they can drive you nuts for weeks on end and then suddenly run off without as much as looking back. Patience is key – and part of that is knowing where your levels are ahead of time. If you’re winging it based on a hunch you’re almost guaranteed to get shaken out.