Warrior Trading Blog

Emini SP on Hump Day | Steve’s Futures Pulse 163

Futures Pulse Recap

Hello Futures Warriors, trader Steve here. In today’s Futures Pulse Recap, we’re going to talk about the E-mini S&P. I recorded all the action so you’re going to be able to see how the trade came to life, why I took the technical break down trade, and how on two occasions we got two green trades out of that E-mini S&P.

So far, 1,625 in realized gains and we got a single unit left from 2,925 and a half at the time of this recording. The best part is, we’ve got our exit trailing stop at that break even point, as well, so it’s kind of like a free trade. So say lots of pessimistic things about the market, we want this market to go down from here. Worst case, gets stopped out at break even, we’re going to keep our previous gains intact. Enjoy today’s Futures Pulse. I hope you learn something and I do look forward to meeting you here in the Futures Trading chat room soon, so long.

Hey, we’re in business here today. Good morning and happy hump day here on Wednesday. Those of you that are logged into the room saw I did post a short sale opportunity here today early just right around the opening here, Stock Exchange out in New York city. Remember, futures have been open already for some time. Initially had short positions right here, 2,925 and a half right up here where you see I’ve circled. And the reason we did that trade, I want you understand, is because we’re down below all this congestion on both the 10 and then this chart right here in the middle is the 30 minute. We have all that congestion up above, market again is going to get some nice resistance on both the 10 the 30 minute chart there. Also, our master points of control down, the mark is down below those, as well, which is going to help our cause. Again, giving us some resistance.

Markets kind of toying with this demand area you see on both the 10 and the 30 here, so it’s going to be important that we watch to see if this market does follow through and give us that breakdown on the trade. We’re off to the races so far on this one, so we’ll see kind of how it ends up shaking out. It’s going to take, obviously, a moment in time here to do what it’s got to do. So we’re going to kind of stay out of the way on this market here. Let it navigate this demand area. I’m looking for another surge lower. That’s what I’m looking for. Another thing I’m watching here is notice how we’ve been in a rotational market here in the overnight. Over on the left, this is what’s called [Taz 00:02:13] price compression levels, static price compression levels, or PCLs, and this gives us three levels of support and resistance each and every day that we can rely upon.

The middle zone here between aqua line to aqua line is the rotation or neutral zone. So you can see the market’s kind of been rotating sideways going there. And that happens time and time again. What we’re looking for is to see if we can ultimately get a break down below that bottom aqua color band and start moving into what we call the bear camp there. Okay, so market, we’re trying to be patient here on this market. It’s trying to stay down below the demand zone, but it’s also kind of hovering into the comfy confines of that value area. So you could see here, a lot of space down below that open space on our trade on both the 10 and the 30 is the area that allows the market to navigate freely. Remember, when markets move vertically. Of course vertically down would be our preference here on our short position. They they’ll move fast and vertically, and that’s what we’re looking for for a break out mode trade like this, that albeit started what we call in the box because we had good congestion up above.

Now we’re moving into a bearish breakup mode trade, so it’s kind of a little bonus of we were able to position ourself, grab a few extra points in advance, and now the breakdown trade very well is underway. I’m up $2,100, I do got 12 units on this one here today. So I’m starting the day off, obviously, on the right track. We’ll see as this trade kind of comes to life. The initial stop on this one 2,931 and a quarter. That’s $287 risk per contract, but you’ll see I’m going to be trailing that down. Markets breaking, there we go. There goes 20 and three quarters, 20 and a half. I’m up $2,700 on the trade here now. Okay, we’re off to the races. Again, 12 units at 2,925 and a half right here. Stops up at 31 and a quarter. I’m going to be moving that down here eminently here.

In fact, I’m going to go ahead and do that right now. We’re going to take a good chunk of that risk out of this trade right here, right now. Bring it all the way down. You’re gonna be able to put that thing. Actually, it works out that it’s at break even back above that POC, so you’ve got a break even trade on this one. Off to the races and we’re having some fun here today, right? That’s what it’s about. Here we go. Market can give us that next wave break. If it starts to move back inside the value area here, we want to be cautious about that. Looking good in the neighborhood. We want to see it stay down below or back inside the value area of moments ago. I just covered 11 of my 12 units, that closes out 1,375. Don’t want to see a good green trade for a few minutes worth of work turn into a red trade.

And in some of the volatility we’ve seen in recent days, that has been a challenge, right? Early move in our favor and then we see some volatility kick in and kick us out of the trade. So we don’t want that to happen here today. I think we need a good moral victory, a nice little green day to get us back on track here today on Wednesday. Don’t forget, if you have adjusted or scaled out of a portion of your trade to adjust your lot sizing on any remaining stops. Otherwise you’re going to be getting in a long position unintended, okay? So here we go. So 1,375 closed out a moment ago. Our stop’s at actually break even on the remaining one, 2,925 and a half, so I’ve got no risk left on that minus maybe a tick of slippage if the market gets rocking.

We’re in a good position, we’ve got a free trade. Remember, that’s exactly what we want to do when we’re trading in a multiunit situation. We use those extra units to kind of lock in our worst case scenario short, in this case lock in some green, trail our stop, aggressively. In this case, it happened to work out that it was at the break even point. If we get another break lower, I’m going to be trailing that stop down to 2,923 and a quarter, which will lock in a worst case scenario additional little bit of profit on the trade, so we’re going to wait to see if indeed that comes to life. I’m just watching it here with you now, so you should do the same.

You can see this, we’re at 2,522 and three quarters zone right here. 2,923 is that demand zone right here. Okay. Again, in both cases is going to be good for the trade if we break down below here. All that space is going to be good for our shorts, okay? But it feels good, right? It feels good to be back on track here today.

Yeah. We’ll see where she goes from here. Okay. This is our first trade of the day and we’ll see what the market has in store for us today.

Margin requirement at most of your future’s, boutique firms anyway, it’s going to be about $500 a contract. Remember, day trade margin is reduced, should not be your full initial margin requirement. However, there are some firms, won’t say any names, but some of them do require hefty margin if you’re not getting a day trade margins on your E-mini S&P. If you’re a day trader and your intent is to be flat at the end of the day, it only makes sense for you to be considering a firm that does offer some gracious, greatly reduced day trade margins, because you get a better bang for your dollar buck. All right, so we’re hovering. You can see I’m going to zoom in here on the 10 minute so you can see what’s cooking here.

You see this is the area you want to continue to stay down below. That’s 22 and three quarters. Over here on the 10, it’s 2,923. I’m going to bring up the scanner here because I want to show you some things also on the scanner here. Draw your attention to the bottom right of your screen here. Let me make this a little bigger here. This is the task profile scanner, a tool I use. It’s actually the world’s only market profile-based filtering and scanning tool on the marketplace as a standalone utility. You don’t need an external data provider. You don’t need a host platform like the indicators require. And everything you see comes in here out of the box. What I like about it is this landscape charts.

So this is the E-mini S&P that I have up here. This is actually showing a daily chart up here if you’re wondering, but what this does for me is it gives me an awareness of the weekly, daily, four hour, and 60 minute timeframes down here and where are those key current value area levels are. Because then I can really quickly put my cursor here and say, “Okay, cool. If we break 2,920, that’s going to be awesome.” That’s what I made mention of earlier in the chat and then you could see, gosh, if we break below 2,908, that means we’re moving into the bear camp on these longer term swing time frames, which is never going to hurt our cause even if we’re trading short term day trade here initially today, okay? So we’ll see if that indeed happens. That’s the Taz profile scanner.

The other tool I look at, especially when trading the E-mini S&P, remember this is called the Edge, okay, another standalone utility that I’ve created, and what it does is it allows you to see … Well, I like to equate it to like the poker game between the bulls and the bears. This is your chip count here. Okay? This the bulls have a 193 chips, or stocks that are bullish, accounting for 40% market cap weighted of the S&P 500, the bears, 194. so it’s a pretty good battle and you can see that battle right here. As you can see, they’re kind of waltzing up here. When they’re dancing about the same level. You can see they’re about the same level number of stocks and the weight in the market in terms of percentage, it’s about the same, okay.

But what what triggered that short, and so far a good trade, is look at the turnaround here. We’ve got early cues that the bears, the red line, was creeping up. This percentage line right here, okay? This is zero to a hundred percent of the S&P 500. Now remember, this is what we call market internals, okay? So we’re essentially, whereas the price of the S&P up here is kind of like the outside of an onion, if you will, for lack of a better analogy, you’re just seeing the price. The outside of the onion. 2,923 is the price of that onion, right? But if you slice an onion in half, as you know, before you get watery eyes, you could see a whole bunch of rings, right? Well this is like slicing the onion in half, looking at the rings, and being able to determine, of the 500 rings in there, how many are bullish, how many are bearish, and how many are neutral. Okay, that’d be the blue line right here. You can see right now, neutral. Those that are inside the balance area or value area, just 85 stocks, or 14%.

So it’s going to be interesting to see what wins out in the Edge, okay? We want to see for the short position that we still have we want to see that red line continue to creep higher and aggregate bearish candidates in the S&P 500. And if so, you will certainly see that market give us a second wave breakdown below. We’re going to find out if we’re going to be able to weather the volatility here on the our last unit, however. 2,925 and a half is our stop, which would take us out of break even on that final unit.

Bring this up off the screen here so you can actually see what’s going on. Let’s go take a peak. Let’s scan through some of our other usual suspects here today. Let’s take a look at light sweet crude. Down 53 points. This one actually has a nice little break down trade. Similar kind of idea here. Real nice break started late last night, actually. You can see this is about a news time in the evening. After the big run up here in the crude, okay. Markets started testing the water in these breakdowns. Remember, down below that green line that you see, the breaking of the demands, that’s bearish. A consistent rebreak down below is a reaffirmation that the market is top-heavy and likely to favor the bears. And you can see that happening here. It’s already starting to migrate into this wide open space that you can only see if you use market profile.

Remember, down below here, here’s just volume bars down at the bottom. So traditional volume bars, which are, hey look, a lot of people start by just looking at volume bars to make decisions. And then you find out when you kind of dive into your analysis a little bit deeper that there’s one really important thing missing in volume alone. It’s a great liquidity measure. It’s good to know that you’re trading in a liquid market at a liquid time. But one thing volume by itself doesn’t do is it doesn’t tell you at what specific prices all the volume is occurring. And that’s what market profile does. So for instance, all this volume here, we flip it sideways, and that’s where we’re getting this horizontal left to right pointing histogram, and this shows us, see how you can easily see this zone of prices right here is where all the activity is.

Now that’s great resistance when it’s above the market, of course it’s support when it’s down below, and that you could see that’s why those that are doing anything in the crude on this timeframe should be on the short side. All this resistance and volume aggregation is up above. Okay, so you’ve got no business whatsoever hitting the buy button right here, right? Because you’re going to bump your head right on all this resistance, which is super easy to see if you’ve got your Taz market profile market map indicator up there on your chart. Okay. This thing’s still could drop, especially if we clear this zone right here. In fact, actually we did in [inaudible 00:13:03], but you see how it opens up and now we’ve got some space to navigate through those Taz boxes, value area levels. That’s exactly what we want to see happen on this trade. Okay, so bearish tone for the crude.

Let’s go look at the gold. August gold down 320. We’re in the congestion zone. Again, you can see that with your market map here. You’re also in it here on both the 10 and the 30, and you’re pressed up a little bit down below that neutral zone here on our price compression levels here. So it’s going to be important to see where gold goes from here. It needs to break free either up here or rebreak down below to give any kind of significant price movement.

Let’s go take a look at the copper market this morning. This one’s been on both sides of the value area and just had a had a turnaround moments ago. As I’m looking at this chart, there’s some other things that I look at that would allow me to still have a bearish directional bias. I’m gonna show you why. This is the longer term time frame. Remember, this is a 30 minute chart. Over here is just a 10, okay, so when we’re ever, there’s a disconnect possibly at times between a 10 and the 30, you go with a longer term timeframe.

What I like about the possible short side here is still all the volume aggregation is largely up above here, so if this market starts to break back down, that’s going to be in sync with our bearish breakdown on our navigator and there’s still a whole lot of room down below here, okay. As opposed to hitting the buy button here. Look at all this congestion. This is like you’re going to have to pick a fight with the bully in school right away and you don’t want to do that, at least not on your first day of class.

Let’s go take a look at the currencies here. We’re going to cycle through the Australian dollar, which lo and behold, breakdown, breakdown. Again, you’re continually breaking down below that green line demand zone, which is bearish and puts that bearish tone on your trade. Let’s go look at the British pound. British pound, just the opposite, right? Up, up, up, and away. Up, up, up and away. Too far along to be chasing it to the upside, so you’re going to wait for that market and get back in balance and give you a breakdown trade. Here you go. Look at what goes up must come down. We’ve got a huge slip and slide bar right there, and we’re going to be watching to see if that market can break back down below the 7,501 level, and if it stays down below here you could see the market do a test of this zone right here.

This is how your volume aggregation zones right over here can help you to pick a target. So if this market is going to continue down here, where do you want to take your profits? Before you get there, before you hit all that congestion. Euro currency, there you go. Keep an eye on the Euro currency here, 30 minute timeframe would be working on its third box possible breakout, and look at the long range bar back here. We love to see that when we look left of the chart, if we see a whole lot of space in a long range bar, we’ve got an opportunity to see this market slide right through.

Here’s a take a look at the Swiss. Too far along to the upside, but you can see it’s a nice clear cut break to the upside. For those that were up late last night, it looks like that triggered in this breakout mode trade on Swiss happened late last night. What time is this here? Looks like a 10:30 break to the upside. Don’t want to chase that here and now.

Let’s go take a look at the grains, and then we’re going to circle on back to the S&P and kind of check in there, okay? Corn down three and a half right now. Disconnect between 10 and 30, so no dice for me. The wheat, down seven and a quarter. Here you go. Starting to simultaneously break on the wheat on both the 10 and the 30. If you’re looking to do something here, remember you’ve got all this congestion up above, so you’re going to want to temper your enthusiasm about where you’re going to jump out of that trade. Here’s the soybeans. Soybeans are down four and a quarter. A lot of room down below. Oops, hold on a second. There we go. A lot of room down below here on the 30, congestion up above, back to back congestion up above on our market maps there. Lots of space down below. That’s an area we’re going to keep a close eye on.

Let’s go take a look at the meats and then we will have covered the gamut. The cattle here in breakdown, simultaneous breakdown mode here, actually, on both the 10 and the 30. You can see that over here. You’re starting to establish in the 10, lots of space down below. You meat lovers. Yeah, they’re going to be grilling out here, 4th of July holiday just around the corner. We’re reestablishing ourself with the bear camp here, as well on the 30. And again, probabilities are going to favor, especially if it can break clear of that 105 level, which is not too much further than where we are right now. You can expect the market’s going to give you a nifty little slide to the downside. Okay, risk on a trade this, at $4 a point. If you’ll work a hundred points or a full stop, a hundred points higher, it’s going to run your $400, of course. That being said, okay.

Let’s go take a look at hogs. Hogs, you’ve got to break out to the upside on the 10 and break down on the 30. don’t like that chart as much as I do on the cattle.

Let’s go take a look at E-mini S&P here on this one. You can see since now, actually I just looked here. Yeah, I did get stopped out. We trade back up to that break even point at 2825 and a half, so I’m stopped out on that one. 1,375 is my yield on that breakdown trade, and aggressive profit taking we took out the E-mini S&P. Okay, so we’re not going to be upset about that. We covered at 23 even, so sold 2,925 half on 12, in my case, covered two and a half points lower at 2,923. Now this is a good little cover here, because look at how quickly the market bounced off here. We learned our lesson from yesterday. Oh for three yesterday on three, actually a break even trade and two small losers, but still never great to have a red day. We’ve come back here, nice green trade, come back and get it in the same market that we had some challenges yesterday.

Remember, this is all normal that the market pulls back into this congestion zone. Remember, this is like the popular area, that yellow line right there, that’s called master point of control. It’s like the most popular kid in school. The highest volume price on the board is right here at where you see that yellow line. And more than one can appear here. The one that’s extends furthest to the right, like you see right here, is the senior of the bunch. Okay, so it still could get another sale off, sell zone from right here, and it could still break hard yet again today. We’ll see if it stays down below all that congestion and master point of control. That’s going to be the key thing to watch.

Let’s take a look at the industrial metal. This is copper. You’ve got the congestion zone up above on the 30, got it down below on the 10, so the dueling forces there. That’ll keep me out of the trade in the copper, at least for now. I do like the copper market when it’s got the right setup.

Back to the E-mini S&P here. Hovering right below that POC here. Look at the expansion volatility, so when the height of these levels, you see the red, aqua, and green line here, they’ve expanded vertically. They’ve stretched this way higher on the red line, stretch lower on the green line. That’s a measure of volatility. So the levels do give you a volatility gauge, as well, built right in. So it’s not just balance zone, it’s balance and volatility zone.

I’m going to circle back at a couple other markets here that we’ve been keeping an eye on here. Here’s bonds, nice breakdown in the bonds in both the 10 and 30 minute charts that we got side by side here. You can see this was early this morning. Look at the breakdown starts to happen. Now remember, we start consistently closing down below the green line. What do you do? You trade in that direction. Put the stops above the levels, right? This is a classic slinky trailing stop. Likely you’re going to be stopped out there as the market breaks back above, but it’s the slinky, like a slinky at the top of the stairs. You drop it down, okay, and trail it behind the market.

Let me take a peek at the crude here again. Down just 35, coming back just a smidge. Levels down here have appeared on the 10 minute, still in breakdown zone and down below the congestion here on the 30, the middle chart. As we speak here, starting to break back to the upside on the 10. You see it turn that big bright green color bar, that’s Taz Vega, One of the indicators I have, turns it bright green when we’re in a bullish breakout mode, when we’re closing and moving, in real time, above that supply area. See how it makes it real nice and easy to get into that bullish state of mind on that respective time frame. Just the opposite when we’re down below. Red colored bars is Taz Vega turning the bars red when we’re down below. The gray means we’re inside the value area. If you’re wondering, the orange, it’s orange when it’s the first bar back inside after previously being above, so look at these bars. Three green ones, closes above, above, above. First bar close. As you can see, we’re right back inside those value areas between the red and green line, so it turns it orange, and then boom, red, red, red. We’re below, orange, first bar close back inside after being in breakout mode.

This is how it works. You see how that works? Nice little zoom in on kind of the color cues. It’s not rocket science in this case. It’s more of a kind of a convenience tool for the eye to see much easier, like even look back here in crude on the 30 minute, green, green, green, green, green. Keeps you in that bullish state of mind. Got no business hitting the sell button on those long string of green color bars. Same here, again on the 30 minute, 30 minute still in the bear camp, so red color bars.

Let’s go back and take a look at this cattle market here. Going back in time, 106, this thing has an opportunity to sell off here in the cattle, this August cattle market, symbol LE, you can see Q19, if you’re on, this is e-signal I’m showing. On other platforms, LEQ9, drop the space, drop the one. Be familiar with your symbology, of course.

Watching the E-mini S&P, might be rebreaking again here, here we go. The sink could slippy-slide here again and give us that nother break to the downside. It may very well do just that. We’re going to find out. Trade rate at 25 right here. A rebreak down below this 23 level would be bears for the trade. I’m back on the short side, 2,925 and a half, 2,925 and a half, six units, half size from the first go around here. Remember, I’ve closed out 1,375 already on the short side in the green. Six units on the short side. Now same price, ironically. 2,925 and a half. You say, “Why would I enter the same price that you just got stopped out on that final unit?” And it’s because, remember, we have new information. So although it’s the same price, we have new information, we saw the market breakdown, comeback, get comfortable in that volume aggregation zone, and we’re hanging in there on this one. So for this one, I’m putting the stop just a smidge above that top of the box over here. So it’s going to be 2,929 and a quarter. 2,929 and a quarter. So it’s a little tighter stop than we worked the first go around. Okay. I’ll type this up in the chat window here for those of you that are in the room. Okay. Give me just a moment to do so.

And I’m doing it as a separate one here. I’m just reiterating here. And so we’re back on the short side again. A little tighter stop this go around. I’ll tell you the risk here. So we’re going to take 2,929 and a quarter, right? Minus 25 and half. That gives us three and three quarters points, times it by 50 bucks per contract. 187.

So it’s about a third less risk on our second go around here. Market’s already starting to break. We’re feeling good about the trade. Always feels good to get an initial break in your favor right away. Maybe you could trade the micro E-Mini S&P, as well. One tenth the risk of the E-Mini S&P, okay. Instead of symbol ESU9, it’s going to be symbol M, as in micro, micro ESU9.

Same reason, everything I liked about the trade the first go around is still intact. All that volume aggregation up here. A little tighter stop here on this one. Sub-four point stop. Again, name of the game here in the S&P remains being able to weather volatility. That’s going to be key.

We’re short. We got the bout a point on this one. 50 bucks a contract in our favor. Let me zoom in here a little bit so you could see. So we’re in right there. Our exit point if things don’t go our way is going to be right up here, just above this supply line up here, okay. So market has to work through all this congestion. Remember, that’s going to be resistance. If it comes up here, and you’ll see it, look at all the bunched up, sideways action there. That’s actually resistance. So if the market comes back up here, we hope we get some of that, worst case scenario before hopefully it gives us that rebreak down below, okay.

That’s out of our control. This is all about probabilities, trading, okay? This is all about probabilities right now. We’ve positioned ourself with a kind of an army of resistance up above. Now anything can happen. We saw a little bit of that yesterday, right? Yesterday’s trade, we had a nice trade. We had a couple of points on it just like we did in the first go around this morning. Trump comes out and tweets with some optimistic tone and market pops higher, stopped us out. Out of our control. Can’t take it personally.

This is that part of the trade where you sit tight. And it’s Wednesday, information coming out soon. Wouldn’t mind being out of this trade with another green snippet out of the market before then, but we’ll see. Lots of excitement out this afternoon, right? FOMC later today. Alright, here we go. It looks like we’re trying to test this rebreak here. I’d love to see that. I would love to see that. The market has my permission to do just that if it wants to, okay.

A low, the current bar right here comes in, bounce rate off that demand zone. Remember, that’s what we expected. Until we break that green line, that demand zone, market will bounce off of it, oftentimes. If this market will be cooperative, I may grab 23 and a half, grab another two points on this one, and still leave my runner in play. Remember, I’m short six units, 25 and a half. Looking to grab just a little snippet here. We’ve got a point in our favor right now. Market’s having a tough time breaking second go round down below the demand zone. So it’s more of a risk mitigation move than anything here.

All right, I’m going to grab five of the six units. This is a risk management move, five of six units, 24 and a half. You get a little bit better than that here right now. 23 and three quarters. Add a little bit, about 250 to the bottom line there. So I got just the one unit now. Down to one unit here in the runner, which feels good. That’s a risk management move. It wasn’t about being super excited about the profitability on that one. Grabbing 50 bucks a contract times five, added 250 on the trade, but it’s really more about I don’t got six fold risk should the market pop higher. I still got the single unit here we go on the break. So I still got some skin in the game here. Stop still sitting 2,929 and a quarter rate up here, right up there. Well, here, I’ll better align it right there. And if we get that little move down below that demand zone, I’m going to bring that stop down here again. Here’s our entry point 2,025 and a half is where I’m drawing it right here.

So first go around, we took 25 and a half right here and we took it down on this surge down to 23, which is right there. Okay? So we took it from here to right about there. Second time, we got in again here and we covered at there. Still got some skin in the game on the downside here, okay, on a single unit. So very low risk. There’s the break there on, that’s what I was looking for. So we’re getting that break. So this final unit doing nice for us. 150 open P&L on that final unit. Taking the risk off this one again. This one, I’m putting it still at that break even, 2,925 half on that final unit. So we’ve got a free trade, a free runner, okay. So 1,625 so far, with 125 on a single unit still left in play. You can see right there, okay. 1,625, 125 in open trade.

Remember, on E-Mini S&P, guys, almost any account size can participate in that. Micro E-Mini S&P. One tenth the size, symbol MES, the margin requirements’ 50 bucks. That’s the margin minimum of balance you need in your account. $50 to day trade it, if you’re trading symbol MES.

While we’re waiting here, let’s go check in on a couple of other markets together. Light sweet crude down 45. This one continues. Remember we talked about this one earlier. Look at all the space back here, look at all that black back there. That means the market can move freely down here and you’ll see how you can see through your market profile, your market map. You’ve got that congestion up above. Okay, and see we talked about precedents of the longer term timeframe 30 over the 10. Remember this was up above here just ever so slightly. Well the 30 minute never even got broke back inside its value area, so it kept it in the bear camp. This thing’s going to break here pretty quick here. Watch this. Look at that downward pointing trajectory here. This is light sweet crude, by the way. We switched markets if you’re wondering. A lot of room down here, the steep fall off in volume from here, like a cliff, like that. Aggressive move prior, so that gives us those nice slip and slide bars possibility here.

On your quote board, just bring up your different months. You can compare the open interest in volume at any given time. That’s the, I think probably easiest way. I think there’s some web resources as well but they’ve got usually, just use your watch list.

You also can, you are exactly right. DT 360 trader, the simulator, the preferred simulator for futures trading, as well as Tradovate. They got a nice little pop up, comes up right up on your screen there and will tell you when it’s a good time to be thinking about the next one.

Let’s go take a peak at gold. Yellow metal. Gold is trying to navigate above that 1,348.30 area. Just a in juxtapose manner, you see there’s congestion down below, so you gold bugs likely gearing up for possible uptick here.

So you’ve got volume here. This is gold now. In markets navigating above the supply area, so we get into a bullish state of mind, and then look at the fall off in volume. You got some space up above. It’s good for the trade to the upside.

So we’re down below the demand zone here on the 30, that’s good. I’m just here watching right with you. Sometimes there’s nothing to say here. Demand zone on the new 10 minute box comes at 2,921.

One question coming in from the chat room is Eric says he had a stop order today and you were filled some ticks or so higher because your stop loss and there was a huge volatility spike in the Canadian. How that works? The the way a stop order works, a stop order doesn’t mean you get that price. Stop order simply says when the mark trades at or through the price, which in a fast moving market can sometimes leapfrog. Remember, we don’t trade it necessarily every tick, or there’s not enough volume at every tick to generate everybody getting that price, it just turns to a market order. So that’s what’s called slippage. Slippage is when your stop order triggers at X, Y, Z price, and before you get filled, it’s one, two, three, four. In a fast moving market, it can be 10 ticks higher.

Now it’s not … most of the time you get filled, it’s hopefully not in extreme volatility. So you’re either filled at your price on a liquid market, or a tick maybe. So it could cost you, I don’t know, $10, $12.50 depending on the market. But yeah, there’s nothing you can do about that. The other thing you can do is you could use a stop limit order, which means the stop order triggers then a limit order at that price, but it’s risky. Now here’s the risk in that. Especially if the stock order is being used to get you out, like in the case of a stop loss, stop order triggers then a limit at that price. And guess what? The market never gives you a chance to get filled at that price, so it takes off. Okay, so you basically are sitting down there unfilled thinking you’re out. In the spirit of trying to get a better price and control price, you’re not getting out in the market. Now you’ve got all this risk.