Today’s Trading – You’ve Gotta Love Those S&Ps!

You have to love days like this.  The S&Ps offer so many great opportunities.  It is no wonder that so many traders work the ES day after day.

1. In the opening range, it appeared that buying was coming into the market.  The overnight had stayed within a narrow range and it seemed reasonable that the S&Ps would take a shot at trading through the high of three days ago (1332.50) as the other major indices did yesterday. 
2. Instead, the market fell through the small shelf of support causing buyers at that level to bail on their trades adding to the supply.  New momentum lows were made in Ticks and price as the market came to yesterday’s low.
3. The weak rally off the 1320.00 level telegraphed that yesterday’s low was unlikely to hold.  Unfilled gaps seek to be filled, as they say.
4. Price fills that left over gap and becomes oversold, although only a weak rally occurs.
5. A spring of the lows at the end of the noon hour.  Low volume and higher Ticks indicate a lack of sellers as the earlier lows are revisited.  A nice rally breaks the downtrend.  New Tick highs on the day — bullish.
6. High volume, SOT, and higher Ticks say buyers are present and eager at the 1312.00 level.   A very nice rally into the close.

Several of the principles outlined here have been discussed in detail in the weekly Deep Practice sessions.  Members of the Deep Practice group already knew what to look for as the market was painting its bars.

As is often the case, patience is a virtue in trading.  Using Wyckoff principles and waiting for the market to tip its hand and reveal what it is likely to do next gave a couple of very nice trades today.  Although there was one mis-fire early in the day, the rest of the day’s opportunities more than made up for it.  Always remember we are trading probabilities and there is always a certainty that some of your trades will not work out. 

Come join us in Deep Practice.  We meet as a group on Thursday nights, and everything is video-recorded.  It’s an in-depth teaching of how to read and trade the market by its own actions via the Wyckoff Method.  It’s also unlike any other teaching available as we use the principles of deliberate practice to develop your trading knowledge, skills, and abilities.  Learn more here: Deep Practice.