Fading the RTY Futures

In tonight’s video, we talk about the trades that set up in the RTY and ZB futures.

On the RTY futures, something interesting happened. While the full-size contract gave us both a first and second target, the micro-futures contract only gave you your first target.

Either way, you were profitable – but the end result of the trade was slightly different.

We had a total of 2 trades that set up today, for a net P/L of +$485.

Earnings Corner

We had three earning plays set up this morning, from our list that we had prepared in yesterday’s video. Both UPS & LMT ended up working exactly how we expected, while P&G stopped us out.

For companies that reported earnings either after the close today, or tomorrow morning, we have a few noteworthy candidates that stand out.

Below are some price targets, based on if the pattern that tends to happen repeats itself, and we get a move in the direction towards our bias.

We have added in some new labels in the Smarter Earnings indicator that now displays not only the average bullish or bearish dollar move (for a Gap N Go), but also the lowest moves.

We’ve found this to be more accurate, and useful, than using the V-Score in trying to plan out trades.

TickerPreferenceBiasEarnings Lowest $ Move  Avg $ Move 
DFSGap N GoBullishBeat $            2.44 $          3.58
DFSGap Down FillBullish –  – 
IRBTGap N GoBullishBeat $            3.05 $          5.12
SIXGap Up FillBearishMiss –  – 
TERGap N GoBullishBeat $            1.19 $          2.65
TERGap N GoBearishMiss $            2.69 $          2.69
TXNGap Down FillBullishBeat –  – 
CATGap Down FillBearishMiss $            2.53 $          3.40

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