Warrior Trading Blog

Early Bird Special in ES +$1,200 | Steve’s Futures Pulse 157


Good morning fellow traders, happy Thursday, and happy it was. Because, today, in the futures trading chatroom, I posted an early bird special for members in the room bright and early, because we took on a short position in the E-mini S&P and captured four points, that’s $200 per contract. For me, six units, so $1200 in under 20 minutes.

I’m going to show you how I spotted the technical trade, why I posted it, why I got out aggressively, and why, before most people are done commuting to their day job, I’m done for the day. Now, hey, there’s nothing wrong with having a day job and I presume most of you do. But isn’t it cool that you can spend just a little snippet of your life, under 20 minutes, finding a technical trading opportunity with a time-tested method, which I teach in the futures trading chatroom, and you can find opportunities like that. The best thing is, in futures trading, nearly 24 hours a day, you can find these types of opportunities. Look over my shoulder in today’s futures pulse.

Okay, we’re going to get to the charts that you see down below. I’ll talk you through the technical trade, here, in just a moment. But before we do, here, you can can up top, this is the six buys and six sells that I mentioned in the prelude, and $1200. Again, all this happened before even 8:00 Chicago time. The signal came in, actually, a little after 7:30 AM Chicago time and it was 17, 18 minutes later, we were out of the trade. We’ll get to that in just a moment. Want to show you that, because, if you’re like me, and you’re watching, and you’re following along, and you’ve been following along.

First and foremost, I appreciate you following along. You’re probably wondering, “Did you really post it? Could people really see what’s going on here?” You go, “I’m just going to post to you here, some of the updates.” You can see, we finished yesterday, as you see, there, 1931 on three green trades. We posted that, of course, on my video yesterday. But this is a little snippet into the chatroom. These are a lot of my friends that log in every morning, and you can see, early this morning, we posted the alert. I’m going to show you the trade here, now, okay?

This is very real. The information sharing is very real. Let’s take a look, here, at the trade. Basically, what I saw this morning is I started to see, early this morning, this market started breaking down below that demand area. Remember, those TAS boxes indicator. TAS market profile analytical suite, that’s what we deploy. It’s my analytical software. When we start breaking down below that green line, we know we want to eliminate any thought process on the bull side.

Now, look here, if you look at the wee hours of the morning, there was actually an awesome breakout trade of the upside; up, up, up, up, up. That, in itself, was good for 15 points it looks like. Of course, I was getting my beauty rest, so it didn’t matter. But you can see that we started to see the market give some volume aggregation. That’s when you see these lines in the background start to amass and grow further, and further, to the right. That’s what market profile is all about. We’re taking volume down in the bottom, that you see here. Traditional volume that, quite frankly, most traders it’s all they look at, is the volume down there. But they’re missing an important element that every trader must know. That is, at what price is all that volume occurring?

That’s why we flip it sideways, like this, so we can see explicitly where that volume is occurring. I’m going to outline this here, so you can see this market profile, sideways histogram. Long story short, this morning I saw the market start to breakdown below that demand level at 2834.8, you can see that. Then I was also looking at the 30-minute time horizon. You can see the 10 and the 30, and that breakdown zone came at 2833.8, so we initiated that short position and, in my case, six units at 2833 and three-quarters. I’m going to draw a line, so you can see where that was, right there.

Now, we put a stop above our technical high, give a little breathing room up there. That was at 39 and a quarter, because we wanted to give the market enough time to ebb and flow. Shortly after we got in, the trade market came inside the balance area just for a little bit, but got good selling pressure on what we call, the point of control. That’s that aqua color line, right there. It’s the mode of the projected volume there. The most frequently recurring price. You can see, that comes in at 2835. So the key is putting a stop up here, across the highway, is what I like to call it. Across that busy congestion zone, so that you let the market work, and then, boom, we got the sell off, here. Again, in under 20 minutes. It was like 18 minutes later, and we did do a fairly aggressive cover, here, at 2829 and three-quarters.

That’s the four points, 33 and three-quarters to 29 and three-quarters, 4.6 units, $1200. And, again, many folks just getting warmed up, getting started, putting their clothes on, brewing their coffee, and I’m done. Another green day, and we’re keeping it green in June. Putting together a nice little streak here, again. All right, folks. I’ll meet you back in the markets next time. Until then, trade well and be well. Bye, bye.

Well, as you can see, there’s valuable lessons inside these videos. And that’s why now’s the time to subscribe, like, and share this video, so you can keep getting alerts every time I post a new video, as well as the other warrior trading mentors. Until the next video, happy learning.