Posts Tagged ‘s&p 500’
Fibonacci Levels – SPY, QQQ, IWM, DIA, MSFT, NFLX and CSCO
Once again, we have a nice pullback setting up in the markets, giving us some new opportunities to enter on a trend pullback.
In this video, we’re going to start by reviewing what the SPY, QQQ, DIA AND IWM are telling us, by using price action, volume and Fibs. While QQQ currently offers us the most Fibonacci-support, it’s also the most extended (duh), having reached its 1.272% extension of the Feb-March swing high to low.
We’re going to use that to dive deeper into some stocks in the Nasdaq,
Read MoreAdapting 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
SPY, 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.
Trading 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 MoreManaging a Small Loser in the S&P 500 Futures
We’ve had a nice winning streak with our futures trading over the past few weeks, which ended today with a small loser in the S&P 500 Futures. We also discuss a couple trade setups in COST and KR.
Our Trade Plan is designed with a set of rules in mind to keep us out of trouble, more times than not. In the case of the /ES futures, our rules did just that. We had an opportunity to short the S&P 500 as the markets slammed into our Volatility Box levels in the 10-11 am PT hour.
However, we did n
Read MoreDay Trading the Russell and Copper Futures +$1,580
The Russell Futures (/RTY) has been more volatile than its index peers as of recently, which has also led to us finding some really nice Volatility Box fades.
We had a nice winner earlier in the week, and that same trend continued today. In the Russell futures, we had two trade setups that triggered, both of which were winners. One was via our new Scalper Volatility Box, while the other was via the Conservative Volatility Box.
The first day trade in the RTY futures was good for +5.6 points, w
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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