Introducing The Emini Pop Up Chat For Traders
February 5, 2013 at 8:53 PM (QQQ)(DIA)(SPY)(FB)(NFLX)
CFRN "Pop-Up" Chat - Neighborhood Outreach For Emini Traders
Tonight was our first impromptu, random gathering on the web and quite frankly, it went rather well. As someone who by nature is organizationally challenged, what better way to fulfill my calling without having to adhere to some rigorous schedule rubber stamped by The Man. Thanks to those who Popped-In and made it possible.
Emini "Pop-UP" Video Chat
Last Night's Emini Tweet
Last night we posted the Zone to Zone move in the S&P Emini -
SP500 Emini Futures - The Groundwork For The Setup
Consider being long ESH3 above 1494.75 or short below 1489 whichever presents first. $ES_F #es #emini #futures #trading
— DeWayne Reeves (@CFRN) February 4, 2013
S&P500 Emini Tweet - Long Above 1494.75
The Zone to Zone down move you see in the first chart, set the stage for us to buy the market and participate in the ongoing bigger picture up trend. Is this starting to feel like the trend that never ends? I assure you, it's not. However, until there is good evidence that we are looking at more than just a pullback, we will continue to ride the uptown bus.
Once the trade triggered we had a relatively smooth ride up to the Weekly Trading Zone at 1504/1505. If you made the decision to simply take profits at that level, good for you. As we would expect, the market did pause at the Zone for 3 hours. Consolidation, coiling, making up it's mind... these are all valid labels for what you see on the chart. It's not surprising, unusual or out of the ordinary. It's simply what price typically does when it encounters a Zone. The only real questions were "How long will it ponder?" and "Then what?" Zone Traders know that patience is critical. Again, just departing the platform with 9 points as we pulled into the station would have made for a most excellent trade and left your afternoon free for boating, fishing, or a trip to the library.
In all seriousness, I would want to see those trading multiple contracts lighten the load here at the very least. Along with taking some profits you also want to tighten that stop till it squeaks. Once the consolidation is over, there are only 2 things that can happen. Price will proceed to the next Weekly Zone 1511/1512, which it did - to the tick. Or, after careful consideration, the hive mind decides it is more comfortable trading at lower prices, so it points the bus south and 1497/1498, here we come again. If that's what the market had done and your stop was squeaky tight, good for you. The only potential for drama here, is if you did not take some profits and if you did not raise your stop.
If you were in for the second leg of the journey, the entire scenario I just spelled out came into play all over again. That's how it works. Day after day, week after week, month after month. This post, Emini Futures - 2012 The Year In Pictures contains over 700 charts that walk you through trade, after trade, after trade, where you'll see price progress from Zone to Zone exactly as it did today.
Now that price has found the 1511/1512 Zone, it will do one of two things - continue higher to the next Weekly Zone, or return to 1504/1505. Notice what happened at 1511. That's what I call a touch and go landing. There was no consolidation, no coiling, just rejection. In most cases such as this, price will return to that area "and go through the process". We will watch the market overnight and throughout the day tomorrow and see exactly how it fulfills its role. On the move down from 1511, price came within 2 ticks of 1505. Always remember, Weekly Zones are an area, not an absolute point where the market must reverse. If I wake up tomorrow to see 1511/1512 being tested, I will not be surprised.
As opportunities unfold we'll keep you posted.
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