TRADING THE E'S: ES AND 6E

Post in this blog have included trades showing the gains, and without them. Trades have been entered in financial chat rooms.  From that effort, there is essentially three positions a trader reading either can respond.  These are responses anyone can have to any post, book, webinar, etc. they come into contact with as a trader.  The responses are:

1. POSITIVE  you view the information, see the trades and think there is something to it that has potential to help you.
2. NEUTRAL  you view the information, tends to lean positive, but may not see yourself doing it.  This is a confidence, practice issue. 
3. NEGATIVE  you view the material, and, for whatever reason,  your not open to any of the information.

I bring this up, because I am excited about the blog views we are getting, and the diversity in the locations of viewers.  Thank you for allowing this blog to reach the success it is showing.  Some exciting "new paths"are in the planning stage.

Tonight, the blog direction is about trading the E's:  the ES and the 6E.  AND...

NO trades will be listed.  The approach tonight is to give you a "plain" look at the chart, and then a "let's tell the story" look.  After all, I can tell you how great it is, and some will go negative.  To be honest, I can see how it affects them.  And if I were in #1 or #2, I would like to see the "why."  I need to know it could work for me if I understood what was happening in the market.

TODAY:  ES


click to enlarge

The story

1 & 2    support and resistance for the open is established.  1335 is a key market level.

3           is a bullish TL, and the dash lines are the extension over time.

4           is the bearish TL seen in the lower highs.  A triangle is formed, and the side ways action is expected to break out.

5 & 6   new support and resistance

7          a second bullish TL, but note that it is lower.  (see diagram)

At the bottom of the chart is a helpful diagram to understand how the market is likely to go.  Decreasing TL's  are showing weakness, and the market is expected to sell.  Increasing TL's shows strength, and is a bullish indicator for price.

Price breaking any of the key levels (S/R, EMA, TL, key price levels , etc.) will be short/long considerations.  A failure will be revealed fairly quickly, and some traders will take ALL with x ticks as a stop loss.  We have discuss some of the reasons for/against taking these trades.

Price breaking two or more of these levels is a stronger buy/sell and should be taken within your risk policy.  Today, there were two of these events in the ES, and one very extended case for the 6E.

Review the following bar/bars and make a decision:   b15   b22   b24-31    b26-27   b49   b64   b65-66

A few comments from today:

failure on es to run bullish 1) watch for bounce around 1335 for second attempt or 2) mkt broken we see more selloff to 30-31

alert es bo target short

ALERT es setting up for a nice move

TODAY:    6E


click to enlarge

The story

1 & 2        pre-open long/short targets set.

3               bearish TL noted

4               TL break; exit shorts suggested for more conservative traders.

5 or 6        exit at EMA break; suggested for more aggressive traders



some valuable comments:

 6e in breakout lower range

6e remains sh until tl break; aggressive traders will wait for ema   (4, 5, and 6 above)

The BO target captured two trades.  The second hit the conservative exit.  Others, liked being aggressive.