ES Thursday 1/12/2012

You have got to love the IB down and back in

Yep, think most of the traders were not looking for a double tap of yesterday's low, caught some off gaurd when we didn't make new lows. plus with the relation of the initial balance low and the value area low, so shorts had to cover when we didn't make new lows.

Horse..regarding your question yesterday.....The opening range to me is the first minute of the RTH session..

This is a common pattern the last few days.....grind it up and then about 1:30 - 2:30 they start some reaction ...

I just sold into single prints above 1289 but I will probably be early...trying to target 86...close to vwap..

we know they should eventually test a previous 30 minute bars low but from how high up is the billion dollar question..

thanks Bruce!

great trade, could just be probing outside of value to see if there are any buyers there so that entry area is good, we tested into the single prints, so i believe the trade should be to sell the single prints with stops at new highs.

TF and NQ are just teasing the highs right now. YM outside day, lots of divergances in the indicies, makes it a little harder to get a good picture of current market health. ZN had a little flush lower.

took 86.75 ..we are stuck in a 3 day bell curve...this is the center!!

I've been tortured too many times on trying to get the previous 30 minute bar low or high so wanted to get out in front of that too..


one last thing...today the pitbull was a challenge if you used the mechanical entries...the minus 4- 5.5 zones and the minus 8 - 10 zones worked perfect....but you will notice that when the mechanical pitbul entries fail because we trend then we have good trades fading breakouts from the 60 and/or 90 minute ranges...notice how they tried to get a second set of single prints on the break of the hour low so good odds that 60 minute low at the very least would have been revisited...

Bruce - would you clarify the entry and exit for today's pitbull trades?

As I see it, the ES sold off 4 points (actually 5.00) and then rallied to -2.50, which would trigger a buy. The market didn't rally another 1.50 pts. Instead it sold off, making this a loser.

The next buy came after the ES was down -10.00. Where would you enter this trade? At -8.00? Or all the way up at -5.50?

ETM I will respond later...I'm trying to get short again near this OR low.. I feel the profile needs to fill in back to 86.50 still and we are symetric for the past 3 days...that was a big Ib today relative to the norms lately

The mechanical trade would have only bought the minus 2.5 after we traded to the minus 4 and had a loss today. Only one mechanical trade but I don't suggest trading it like that. Please keep in mind that this originally was designed to trade the big S&P mechanically more that 10 years ago off the big contract.

I watch stalls at the key price zones and the footprint along with standard S/R numbers and of course MP with the pitbull zones. Days like this is when we don't get our runners to hit any longer targets in the first 90 minutes and we get stopped out.

The person who taught me the window did not trade at the minus 8- 10 zone mechanically ....it was at that level that he used more discretion. There is really no "official" pitbull trade down there. hope that helps

Originally posted by ETM

Bruce - would you clarify the entry and exit for today's pitbull trades?

As I see it, the ES sold off 4 points (actually 5.00) and then rallied to -2.50, which would trigger a buy. The market didn't rally another 1.50 pts. Instead it sold off, making this a loser.

The next buy came after the ES was down -10.00. Where would you enter this trade? At -8.00? Or all the way up at -5.50?

Another wild one today. Market closes up for the 8th time in a row, NQ/TF open out of range then double break the initial balance and close higher. YM has an outside day and double IB break when gapping outside of range! ES didn't follow suit, but we still have a few minutes left! Can't believe we to the tick, hit yesterday's lows! The shorts got angry about that one and covered all day today.

Don't know the last time I saw a gap higher than the previous day's highs, breaks the previous day's lows, then breaks the highs later in the day! Bear killer that's for sure. Most likely a bullish edge tomorrow for YM.