Disclaimer: For educational use only. I’m not dispensing financial advice. We are having an intellectual conversation (you and I) on the topic of trading the Emin futures using the Lens of Wyckoff Principles and the Eyes of WB’s clock. The clock that controls all turns intraday, every day!
I’m soo glad the bulls did not disappoint yesterday, I got a small long on from later this week, just letting er’ ride! Still sick from last week. By my eye, price is just going to chip away at these highs. The lifting volume is a small 700K over the past few days.
Perhaps, next week, I’ll have more for you. For now, that’s all I got! I’m going back to bed and hopefully will be better in a few days.
It’s not the best 45 (I’ve reduced it to 32) minutes you’ll have in your life. However, if you are wanting to see how the spill is sealed or turn is sealed, invest 32minutes to discover how using trend lines timed to WB’s clock will give you better timing in your trade location. And it also explains why Thursday was nothing but a SU day (STRAIGHT UP).
View it during the lunch SLOG or the evening when you have more time to focus.
Looking Forward to Friday, October 22, 2021
There is talk we may have some stock buybacks MS to name a few. Traders are optimistic and looking for that 4500 up to 4550 handles. Not a fan of moving averages but the daily has taken over the 50 on the top side.
Offing Events: The debt ceiling was kicked till December. Trillions are waiting voted on. Delta virus has made a dent. The country is coming undone at the seams. September / October may just be the catalyst for the truth to be revealed.
When the trend is in WB’s clock is your friend. If you have not subscribed take the jab today. It’s less than a cup of coffee each trading day. What more proof do you need? Click the red button below to SUBSCRIBE to the AM TURN NEWSLETTER.
SpyGate is now available free to members of IMPRO and MIM trading room. Join the MiM.
Baxter is our new AI trading helper. This data is early, new, and not very well tested but we want to share some of our findings. We are concentrating on the SP500 which should benefit ES futures and SPY traders.
Baxter is in a bad spot. Keeps wanting to short the open and close on the close, which is exactly the opposite for the past few days.
Chart of the Day
Drilling-rig gauge is seen working for U.S. energy stocks
Energy stocks stand to benefit from the U.S. industry’s “underinvestment” as oil and natural gas become more expensive, according to Richard Bernstein Advisors. The money manager made the case Monday in a Twitter post, citing the ratio between the number of drilling rigs in operation and the crude-oil price. There were 445 rigs at work in the U.S. last Friday, according to data that Baker Hughes Co. compiles weekly. That’s equivalent to 5.4 times last week’s settlement price for West Texas Intermediate crude in New York trading. The ratio has averaged 12.1 times since 2010.
It was only last month when the S&P got spooked by China’s growth and supply chain concerns. After a multi-week decline, the S&P futures (ESZ21:CME) have made seven higher closes in a row and made its 55th record close yesterday.
The ES traded 4522 on the 9:30 futures open, ran to a high of 4533.50 at 10:30, then pulled back about 15 points toward 4518. From there, the ES pushed back up toward its opening range and chopped through the afternoon. The ES opened the 3:00 pm trading window just under 4530 and popped to a high of 4543.25, before closing at 4541 at 4:00 and settling at 4532 at 5:00 pm.
In the end, trading volume has been falling steadily over the last four sessions. In terms of the ES’s overall tone, it was firm. In terms of the day’s overall trade, volume was low at 913,000 contracts traded.
According to FactSet, of the 80 companies on the S&P 500 to have reported through Wednesday, 81% had topped analysts’ earnings forecasts. When you throw in the extremely low volume and all the ‘back and fill’ it becomes very hard to fight the dip buyers. My game plan was to start selling the rallies and selling higher opens, but the ES has been selling off on Globex then rallying in the morning.
Our Lean: At 4:00 yesterday, total volume in the ES was just over 800,000. That’s 1/3rd of what the daily volume was two weeks ago. Trying to sell rallies in this environment is too hard and it’s going against the trend. Our lean is, you can sell the early rallies and buy the pullbacks or just follow the trend and buy the dips.
Danny Riley is a 39-year veteran of the CME trading floor. He ran one of the largest S&P desks on the floor of the CME Group since 1985.
As always, please use protective buy and sell stops when trading futures and options.
Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Decisions to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS