1314 could be the high of the day, if the market manages to rally here. I'm staying out till Wednesday.
Testing a new strategy: Let's see how this plays out. Sell-limit 1 @ 1311.50 Sell-limit 1 @ 1314.00 Stop 2 @ 1315.50 Total Risk: 5.5 pts.
Well this was a pretty good call for today but I would rather not have a position here. It seems like the market has discounted the next rate hike. The Fed is going to determine where the market closes tomorrow. I would like to see it close above 1315 or below 1307 to initiate a new position. I will post the value-ranges in the next post. Thanks.
Value-ranges for tomorrow. ES: 1310.5-1311.5 ER: 756.6-757.6 NQ: 1698-1699 YM: 11310-11316 ER and YM are above the value-ranges, NQ closed right in the range and ES below it. Today, ES was unable to get to its value-range and NQ managed to get there but wes rejected quickly. If you compare today's action to yesterday's value-range the three indexes except ER closed below it. This will be an ideal opportunity to short but just be beware because it could be very volatile tomorrow.
If the ES opens above 1313, I'd be a buyer at 1311.5 with a stop at 1307.5 and target of 1317.5. If the ES opens below 1310, I'll look to sell around 1313 with a stop at 1317 and target of 1307. Either way I'd get out of the position before the rates are announced.
Looking at the Globex prices right now, ES is probably going to open lower to the VR. Sell-limit 1 @ 1310.5 Sell-limit 1 @ 1313.5 Stop 2 @ 1314.5 Target 2 @ 1307.5 Risk Reward: =0.61