Leovirgo,
You got a great style there matey. I don’t have market breadth on my charting package as far as I’m aware. I mainly stick to implied volatility bands on the cash index to give me an indication of possible inflection points.
Yesterday was again very interesting. All arrows on the Macci's point to the 4:50pm mark. I was waiting most of the day for an opportunity to go short. This is a reverse situation of what I posted before. 30min and 60min pointing down this time with the 10min pointing up. Again the only glitch in this trade was the 30min at the OS point and the 10min pointing up. However the 60min still had room left to the down side. Entering with a smallish position size and keeping an eye on the 10min would have been appropriate here IMHO.
The ES chart shows why it’s best not to be aggressive with trades like this if you’re trading futures. You don’t have the luxury of stock resistance if the market doesn’t go your way initially.
I’m personally going to be waiting for the perfect set up to arrive from now on (all major TF's completely OB or OS). It’s nearly here with all the big TF's near to being completely OS on INDU. However with all the news coming out today I think a technical day may be out the window. Weak Nonfarm payrolls data may pull prices down and prompt all Macci TF’s to go into OS territory when the market opens.
The weak data together with aggressive downside price action may prompt anybody in the senate sitting on the fence to swing towards passing the bill out of fear for the U.S economy. Then we may see a push to the upside in prices with all TF’s behind us. I’m bullish and want to be aggressive with longs but I think there may be too much risk involved for my liking today. It all hinges on the market reaction to the data IMHO.
Good trading for today everyone.
