I already stopped out B/E on a long entry this morning. Re-entering on this pullback. I feel safe as long as we hold above, say 70. Could dip as much as 65 I reckon, but then I'll rather stop out and re-enter if that zone holds.
Got it. Couldn't one argue that the low of the range over the prior two weeks was a pullback low on ES? Yesterday NQ filled the gap from the 16th of August 2022. I can see that we're at a potential swing high on NQ, but who's to say we won't continue higher for a bit? Maybe a push above the prior swing high?
It is not a matter of making an argument of for or against, we all see different opportunities when trading markets. I don't trade breakouts, I am a buy-low-sell-high trader. So for me there is decision time now where to close out ES long and potentially short NQ or offload ES position near 4200 SPX and not short NQ but wait for a pullback and then go long NQ. Or maybe I will just short NQ and hold on to the ES long position. Decision decisions
Feel free to let us know when you decide... Personally, and that's just me, I'd rather wait to see what happens around a key level instead of making a decision in advance. So, for NQ, that means I can see we're in a potential sell zone, but I'd wait to actually see if there will be a reaction before doing anything as often the market will just keep going further than one anticipates.
Mean reversion seems likely, but what if today is the day we actually have a successful breakout of 4200? I'm sure that'll have a few people caught by surprise.
Pulled back to yesterday's Close here pre-market. For some context, last week's high was 4169,50 which we broke above and closed successfully above yesterday in RTH. I'll be looking for the 65/70 area to hold on the Open. If we hit a bid on the Open I'm assuming continuation with the possibillity of 4200. With selling on the Open it's probably mean reversion time for a move back to that 4150 number or so. Currently long from 75, but will stop out around 71 and rather look to re-enter as long as the range low holds.
Stopped out. Maybe the ETH highs was a beautiful short entry for a larger swing? Waiting for the RTH Open now. My mind is a bit locked down on the bull scenario with continuation, but have to keep in mind that the mean reversion trade for a move lower seems just as likely. And we pulled back a bit more than I think we should have for continuation higher...
Range low held on ES for now. NQ ripping to new yearly highs and closing in on that prior swing high. ES filled yesterday's gap now. Let's see if we keep ripping past that and take out yesterday's high now... I feel fairly confident we'll at least have a pop above 79. The uncertain part is if we'll actually breakout and continue higher. Anyone else see 4200 happening today...?