Learn to Day-Trade the Emini S&P Futures

Daily Trading Video – Aug 31, 2012

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.

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Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P and the Euro futures. Today is Friday, August 31st, 2012.
The market opened up this morning at 1406.5 represented by this white dotted line. We generally don’t trade the first 15 minutes of the day from 9:30 until 9:45. We had a couple news announcements this morning. Chicago PMI, consumer sentiment and the most important was Ben Bernanke was going to say within that 10:00 speech. So we really pretty much sat on our hands most of the morning.
Came out. Very difficult to interpret when something is said by the Fed or by Bernanke. There was a quick selloff it seemed. Just sit on our hands and wait. I mean all, it got very volatile very quickly. And this quick move to the downside. Not much we could really do to get in on this. I’m not a breakout trader. I’m more of a pullback trader. And even then I was a little bit apprehensive at around 10:14 when the market took off to the upside, but there was a nice clean setup. I did not take it. That’s why it’s written in yellow. But there was a nice clean setup. Take off. Breakthrough. Pullback. If it didn’t occur here we had a nice little pullback here right directly behind it. But we would have had a nice quick 10 ticks.
Price action continued. This 1404.75 is from a couple days ago. It was a key level we were watching. It also happened to be where the VWAP was wrapping around. The Volume Weighted Average Price. Broke above that. Pullback. Nice opportunity. Again, very nervous about trying to take any long hits or going for any home runs today. So we took 2 ticks and 4 ticks got out of this one very safely.
Watched as price action continued to go sideways. And just notice how it wrapped around, we generally don’t trade around opening price between the VWAP area and also the opening price. It just stayed like that all the way up until a little break before 11:00. Again, this happened so quickly that I did not have an opportunity. The pullback was not deep enough for me to get in. And sideways into the no trade zone.
From 11:30 until 1:15 Eastern Standard Time keep in mind this is also Friday afternoon. We generally don’t trade due to the higher volatility and the lower volume. Coming out of the no trade zone we had price action work its way back up into this VWAP area, the 1404.75 and then on towards the opening price again. No real opportunities. If you tried, you know, more power to you. Again, they’re yellow arrows that give us nice, there’s a buy signal. And there’s another opportunity to get in, but I did not take those. They’re in yellow.
And then there was a little bit of a break to the downside. Looked like we were going to have a continuation. Relatively quick 6 ticks. And then into the close. Now this run up was also unexpected. From 1546, 1548 and then this last drop into the close was all within 1 minute.
Let’s look at a different screen. This is a 1 minute chart. Notice the climb, work up into the opening price. High 1408.25. And then this 1 minute candle was a total of 4.75 points. Just this 1 minute candle. So if anybody tells you the market does not have algorithms kicking in or any type of a manipulation going on, you may want to give it a second thought.
Monday is Labor Day. Shark Den will be closed. Wish everybody a happy 3 day weekend. 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 and I’ll see you in the Shark Den on Tuesday 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.