An Interesting ES Level

ES 15 Minute 110713Good Morning, Friends. Just a quick note; in the overnight session, the 1667.50 level, which seems like a pretty unremarkable number, has held several times in the E-minis as illustrated on the chart, above. In this timeframe, stochastics are quite neutral, which surprises me a little. If 1667.50 holds as resistance going into the regular session, I’ll probably put a buy stop at 1667.75 with a 1668.00 limit, on the assumption that a break of a level that has been retested several times will lead to a decent followthrough move. It doesn’t always work, of course, but the general momentum is clearly “up” rather than “down”. 

Speaking of which, I have some long stocks in place. Once upon a time, I would simply decide that a move had gone “far enough”, or I would be eager to book some profits to make up for the inevitable flesh wounds acquired along the way. One of the great things about Todd’s courses is that he teaches us to respond to the market, rather than trying to dictate to it. There are ways to trail stops in order to capture the bulk of a strongly trending move, and there are reversal patterns that have proven to be reliable. It’s never  too late to learn more, and Todd makes it easy. I don’t really trust this euphoric mood, but it’s working for me, and if it turns, I’ll still retain the bulk of my profits, keeping skin in the game until the price action indicates that the time to exit has arrived. 

Best of luck today!

About the Author kevin


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