Posts Tagged ‘nasdaq’
Adapting to Changing Volatility Conditions
If you’re looking to trade volatility, it’s critical to have tools to very easily, but reliably measure and rank the volatility across markets, and adapt.
Today, with the Volatility Box, we had the luxury of adapting to each index market’s respective volatility — and we saw that differ across the 4 major markets.
For example, today, here were the rankings of the 9 futures markets that we look at, with their respective Volatility Box models:
ES, RTY – Scalper
NQ – Aggressive
YM – Doomsda
Day Trading the Nasdaq Futures
We have a systematic process that we follow every single day, for day trading with the Volatility Box.
Using the note we sent out at 7:30 am PT to all of our members, we’ll cover the Nasdaq and Copper futures markets, where we had trade opportunities set up today.
Specifically on the Nasdaq futures (NQ), we had 3 different setups that met our Trade Plan rules, and triggered. All 3 of these were winners, for a net P/L of +$1,560.
On the Copper futures (HG), we had one trade setup which took
Read MoreSPY, QQQ, DIA and IWM Buy Zones and Triggers
We saw a broader sell off in the indices with Friday’s trading, leading many top weighted holdings to start to pull back to entry zones.
In this video, we’re going to use a few different perspectives (and indicators) to create a game plan, with specific levels that I’m interested in buying as support on the SPY, QQQ, DIA, and IWM.
We’re going to use the following tools for the analysis:
1. Put Call Ratio in the Utility Labels
2. Market Pulse Line
3. Fibonacci Retracements and Extensions
4.
Expecting a Trending Down Day in Nasdaq 30 Mins After the Open
We had an early heads up to expect a trending day in the Nasdaq (/NQ), Copper (/HG) and Crude Oil (/CL) futures markets.
The Nasdaq was the clear winner for the day, but all 3 markets made moves in their respective trending directions. We had our notification at 7am PT that we should expect a likely trending day in the NQ futures.
At that point, the Nasdaq was trading closer to 10,100. By the end of the day, the Nasdaq had traded down to 9,927.25. That’s a move of ~1.7%+, which had significa
Read MoreTrading Psychology – S&P vs. Nasdaq Futures (Winner vs. Loser)
Trading psychology, and managing emotions throughout a day, is often times the difference maker between a good and bad day.
As traders, our job is to follow our Trade Plan rules and execute trades that meet conditions in which we have a probabilistic edge. However, this is usually much easier said than done, as emotions and human nature to avoid loss / rejection starts to take over.
Mark Douglas’s Trading in the Zone is one of the best books on trading psychology, and truly training the mind
Read More2 Setups in the 30-YR Bond and Weekend Trade Updates
Our Trade Plan rules typically keep us on the right side of the market. In today’s case, we ended up being TOO cautious with our rules, at the expense of missing multiple setups in the 4 major indices markets, almost all of which worked.
However, our rules usually do keep us out of trouble — which was proven in our 2 setups in the 30 Year Bond futures market (/ZB). In our first setup, we hit both our first and second target, giving us a nice win.
The second setup was a little different, tho
Read MoreRanking Volatility in ES, YM, NQ and RTY Futures
We show you how to rank the 4 major index markets and their respective volatility, in just a few minutes.
As part of our Volatility Box Trade Plan, we have our first hour test, which helps us determine and adapt to the day’s volatility. In today’s case, what we noticed was the DOW and Russell futures giving us signs of being the more volatile markets, while the Nasdaq was on the opposite end of that spectrum.
We perform the First Hour Test for our indices at 7 AM PT, less than 30 minutes into
Read MoreShort Entry in the Russell Futures +$820
We had one entry in the Russell 2K (/RTY) futures today, at 7:40 AM PT, which led to a nice winner of +$820 across both contracts.
The short came in the RTY as price slammed into our Volatility Box, levels giving us an opportunity to try and scalp the markets. Our risk was 4.8 points, to try and make 4.8 points on the first contract, and 11.6 points on the second contract (with a break-even stop).
Once we got our Edge Signal confirmation, that was the green light to enter the trade, with a s
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