Learn to Day-Trade the Emini S&P and Euro Futures – live with a full-time trader.
This video is designed for educational purposes only and to show some of our trade plan setups to reinforce our daily trade plan review.
To successful trading,
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Wednesday, January 2nd, 2013.
Happy New Year to everybody. We had the fiscal cliff was averted. We did not go over the cliff, but of course we all have higher taxes to pay. Regardless of my political opinion, we were very cautious with today’s trading. We had a nice run-up overnight, from the new year until this morning. You can see how our Globex range was about 24 points and as a result we were expecting the market to continue higher. With the expectation of the market continuing higher, we had a very narrow opening range.
This was a fake out breakout. You can kind of see this little blue ellipse I drew. As soon as this significant level was broken we should not be trying for any further upside movement. And that’s exactly what happened. We had a retracement back to a Shark line. As price action continued to work its way further to the downside our tick chart remained above the zero line. We did not take any short positions even though we had a couple hook patterns setting up to the downside they did not materialize. We had no trades this morning.
Between 11:30 and 1:15 Eastern Standard Time we had a no trade zone and shortly after that we had a nice little inverted head and shoulders pattern that initiated right here at about 3:00. A trade opportunity right there at about 3:12, 1448.75. An opportunity to get long. Very challenging opportunity to try and go long in the middle of the Shark band. But we knew we had good news this morning, sell off after the news 10:00. And we were just waiting for an opportunity to get long, 1448.75. Opportunities to get long.
Our target, first target is right here at around 1450.50, second target 1452.5. I scaled out one of them at 1452. And then if you had a runner, you had an opportunity to make anywhere between 23 and 43 ticks, just on this one trade. When we were at there 1452.50, I said this in the Shark Den, I said there’s no overhead resistance. Our first target beyond 1452.50 was 1455, and after that 1456.50. So there was many opportunities if you had a trailing stop working your way up, all the way up here to 1457.50.
Now these trading the last couple days has not been easy based on the news that comes of Washington. You know, it’s up one minute, it’s down the next minute. We never really know except to rely on our indicators. This is a great situation where trade what you see, not what you believe. So what we want to do is we want to stick with the opportunities that our indicators are giving us. Not what we feel. Or not what we’re hearing in the news media. If you’re trying to trade based on what you hear on the news media you would have gotten crushed several times here to the downside. And if you do not trade in your opening range, that’s fine. You could have waited until a break out of the opening range. And then once you break out of this opening range there’s no resistance up in through here. So it’s just these Shark bands up here are like magnets, and price action pulled right up to it before it sold off for the day.
To learn more about these and more advanced trade setups, or to get a copy of the Trader Shark trading manual, please visit TraderShark.com. Thank you. Have a great evening, and I’ll see you in the Shark Den in the morning.
Link to Video and Transcription
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not an indication of future results.