Warrior Trading Blog

Gold & Emini NQ Volatility Pays Off +$1145 | Steve’s Futures Pulse 151


Aloha traders. I’ve got my favorite aloha shirt on, thanks to my friend Barry G out in the West Coast Warrior Trading office. Thanks Barry. Hey, we’re at the tail end of May here. So we’re in the homestretch and we’re looking to finish strong in what already has been an exciting month. Just two red days for the entire month, and we’re looking to finish off on a high note this week. Today was an exciting session as I found opportunities in the evening NASDAQ, and the gold. In today’s recast, I’m going to show you exactly how I did it because I recorded all the action. I traded for a little over an hour today and I am done finishing in the green, little over my shoulder in today’s futures pulse.

Good morning, fellow futures lawyers, it’s trader Steve. Let’s get to work. Looking at this gold market here on our 10 and 30 minute timeframes. You’ll see 10 minute charts here 30’s on the right. What I’m watching is a lot of open space down here on both the 10 and the 30 down below. We are down below the demand zone, which is that green line here on both. I’m initiating short positions here in the August gold, Q symbol. Yesterday was June and moving into August here now, so I’ll type that up here in the alert. Getting short here and we go 128660.

We put the stop up your 1290 and a half. So it’s a $390 risk initially on this, on a single unit. So a little wider on the risk side, once we start getting close to that $400 contract, if it’s too much risk, totally understandable. Also, you remember you can consider smaller size contracts as well or I suspect we’re gonna have some other markets in play today. So, just sit tight, and we’ll see what emerges today. Okay, so short the August gold, I’m going to type up the alert here for our first alert of the day. Yesterday, for those of you that joined us here, we did find opportunities in the crude as well as gold, but we did get stopped out in the corn market. To the tune of… which kept us actually in the red. So that was my second red day of May, I guess it can’t complain but-

Looking to finish strong here in May, it’s been a good May and just looking to finish strong here. The last several days, three days left in the month. I’m typing up this alert so you can see the symbology on this gold as well.

Market’s a little bit better in that 128660 area, you can see we’re actually 1287. My recommendation if you’re still watching and considering the trade, wait for it to break back down below that demands zone. Remember you get the benefit of actually waiting to make sure that, that market re-breaks. Point of contact is important, meaning we want to push the sell button when we’re down below this demands on the 10 as well right now. You’re back inside the value area. If this thing takes off to the upside, you get to sidestep a losing trade, okay? Which is a nice little perk.

Initial stop on this one’s going to be 129050, again $390 risk on this one initially. Little on the higher side, we’re likely to have another trade in play on another market today. Markets are moving pretty good today. Here we go. Notice the symbology change to August contract, which is letter code Q. Here’s what we’re looking for on the trade. There’s a couple areas that are going to be key to this trade. First is, we want to continue to see the market move through this open space here. Okay? Our volume profile shows us that most that congestion is are right up in here on the 30, over here on the 10. I really like to trade if we can start migrating south that 128560 area.

See right here, if we start making movement towards 128130, that’d be awesome. Right? That means we’re getting down into this retreat, and we call this a rejection tail over here, see how it forms like a little triangle blue and color. We have a rejection tail here and we have another one right here, which will do one or two things. Market gets spooked at that point, it comes right back to where it started, or it basically starts running for the hills. And that’s what we hope, the ladder of those two scenarios, okay. Our stop is going to sit up above these double tops up here, nice wide initial stop on this one and I am mindful of that. So we will be looking to take some risk out of the equation given an opportunity. We need that market to break just a little bit for us, before we can start looking at some areas like here, above that 128870 area. Then of course eventually we want to move it even a little bit further south on the risk management side okay?

Let’s go cycle through some of our other markets here. Many of you of course already see in the S&P, down big down 23 and a half. It’s been a real grind here you can see, as you look at today’s session from yesterday afternoon all the way to the present, it’s been quite the retreat off that 2840 level. That we spent some time in yesterday afternoon. So long way from home on there. Let’s take a look at the crude. This is light, sweet, crude July contract. I was looking at a little bit earlier today. I’m continuing to watch it to see if we can start to establish yourself above the 5770 area and then ultimately 5786. Because this is where I think there could be an opportunity.

Especially, because we see these trend exhaustion warnings, that’s those pink magenta color warning bars here. We’re starting to see that 30 minute time horizon give us that kind of hook at the bottom or starting to point upwards there. When we see that, remember, that’s going to be indicative of a market that may be stretched a little bit too far in the bearish direction. Okay?

We’d really like to see this thing get above the 5786 and close up there, because if you draw a little day trade trend line here, you can see we’d be breaching that, if we can get closes above that 5786 zone. Okay? Trade in terms of it’s possibilities, actually has a pretty good reward factor on this one. You’re we’re talking about from 5786 up to almost a full dollar higher, I’d expect maybe about the 70 to 80 cent range. That’s $700 to $800 at $10 a penny if you’re trading the big one. If you’re trading the mini, the QM symbol would be half that $5. So we’ll come back to the crude here in just a bit. Let’s go take a look at the bonds, symbol ZB.

This one’s above profiles right now and also above congestion zones on both the 10 and the 30 minute time frames that we track in here. Not too late to the party, to get out alongside and we’re going to have still some support until the market reaches back down below that 50220 level, see right here? This is when it becomes interesting for me if we breach this level and this level, then we got some room to open up. And you do see that open alligators mouth right side profile of the open alligators mouth is in play here. There’s my eyeball. There’s this scary alligator’s open mouth and teeth. Again, if the market starts to break down below that demand zone, that’s that green line, then we’ll start to think about a short side position. But we’re not there yet. So sit tight and be patient, here we go.

Here’s the gold, we’re rated our entry point here right now, is saying, remember gold is a market that tends to come in windfalls. Right. Either way, I guess you’d call it a windfall being optimistic. That means it’s moving in our favor or volatility against the trade. It’s like it does nothing, it bounces around for about an hour or about $1 range. Then all of a sudden you’ll see a $5 range, which is the value of that move’s going to be $500. Okay. Make sure you get your stops in, if you have not already. We’re on the short side of the August gold.

Let’s move over to the industrial metal here. This is copper market, July contract. Nothing really to do here just yet. The reason I’m not super excited about this is, even though we’re starting to get that upward pointing trajectory on our navigator, even if we move back inside the balance area. Look what we have here, we got back to back plywood resistance levels right here, they’re going to pressure the market even as we approach that zone. Look right here. Similar area, you’re going to get pressure as that market approaches those zones. I’d really like to see the market get up above those areas to evoke my interest in the trade here. Okay. Gold certainly looks like it’s maybe ready to give us that break, come on now.

You got to talk to the market sometimes. If the market starts talking back to you, you may want to seek counseling. Well, I guess depends on what it says. We’re into the currencies here, so we’re going to go start with the Australian dollar. This one is got dueling forces here between your 10 minute look, and again, you got downward pointing trajectory, upward pointing trajectory on navigator here. Generally, I see the disagreement between the younger brother and older brother. I don’t want to get too excited about the trade. Here’s the Canadian dollar, this one went into breakdown mode on both 10 and the 30.

By the way, over here is your S&P, I have that ever present over there on the right, if you’re watching that down 22 and a half. Won’t be bad for our gold position to see the S&P mount some type of comeback, even if it’s relatively short lived. If that should pressure to gold, here we go, gold’s moving in our favor now. Off to the races, vroom, here’s Euro currency. Keep an eye on the Euro currency, my disposition here is going to be, if this market can work its way through some of these congestion points that we see up above. You could see were down plenty on your Tas navigator indicator here. We want to just simply see the official break above some of those congestion zones, so it has some smooth sailing up here. We’re not there yet, so let me jump this one down on my watch list. Okay. And all I’m doing is write down the symbol and time frame. So I wrote EC 30, up arrow. That’s just going to give you a friendly reminder, keep that one on my radar for when we cycle back through. Okay.

So, to the Japanese yen. Keep an eye here, key level needs to hold on the yen, would be up here in 9156 zone. Otherwise, it could fall [inaudible 00:10:05] little speak fall off there to the downside. Let’s look at the Swiss. 10 minute chart on the Swiss, start to come back. Problem is that, you got a nice clean cut brake on the 30 as well. Although your 10 looks pretty good on the comeback trade here, this is where looking at the 30 minute time frame, which was good trading here on some real nice clean signals, give you a reason to pause. Okay? I know again, normally that would maybe get your attention, if you’re looking solely at the 10 minute. But let’s be patient.

Okay, story of the week here is grain markets, they’re moving like crazy. Look at the corn here now. Market did have quite the bounce up, look at the big gap on the chart here as well take a peek here. These are again, high volatility situation here on the grain, so continue to watch but watch on the sideline here. We did take our initial shot on the short side in the corn, wasn’t meant to be we cut bait at five cents or a nickel risk on that. Then obviously here’s the big break here now. Watch what happens around this congestion zone. I’m curious to see if this does start to move down a value area down here and then we have some nice space between our value areas. That’s what we’re looking for. We need space to navigate between those volume holes and volume congestion zones.

Here’s the wheat down six cents, similar story here, big break down below. This one starting to get some new levels here on the 10 Minute. Nothing yet on the 30. I want to take a peek at here on the star of the show, is going to be soybeans up another 16 yet here today but still retreating off it’s high was up even much higher earlier today. 16 and a half higher, if you look where the high was, its 20 cents off the high. It was at 892 and three quarters earlier in the session here, before this big break. Key thing to watch to see what we do again around these congestion zones, or as we approach the congestion zone down below.

No place to add right here we don’t have a good inflection point nothing to really initiate a trade off. Let’s take a peek of the meets here, meets chop, choppy on both sides here at this time. Okay? Look at [inaudible 00:12:21] you can see very quickly here, how [SEO 00:12:24] work markets very quickly on both sides of the value areas. It means you got yourself a choppy market, those are difficult markets to tame, difficult to survive more or less thrive. We’ll keep looking here at some other markets. The hog’s little bit better in the August contract, little cleaner on the break here, could be an opportunity on the comeback trade but nothing too enticing for me in the meats here today. Here’s the gold, this is August contract again, we’re on the short side here right here. We just want to continue to see, remember, small mini victory. We want to see us just seeing that market closed down below 128730, which is right here, that green color line. If we get that, we’ll feel good about the market continuing to establish itself. With some bearish tendencies there.

Be patient, remember, just like that it can happen. Let’s go take a look at the NASDAQ in the meantime, good news over here look at the S&P trying to make a technical comeback here, right here. If we can get above this 2790 areas. See how it opens up, that wouldn’t be bad I’d love to see that happen because that should be good for gold short position. Look at your NASDAQ actually starting to break up above. I like the long side of the NASDAQ symbol, N-Q-M-9 maybe $20 a point if you’re trading the NASDAQ and NQM9, it’s good looking trade. It’s just starting to break right now. Just moments ago, got long 7250 and a half. 7250 half you’re long and June NASDAQ.

Look what we’re seeing happen here, we’re getting the simultaneous break up above here, on both the 10 and the 30 and very similar constructs here. You saw the market break above, come down and wanted to test the bearish camp waters one more time and now we’re getting a nice break to the upside, okay? We’re long the NQ 7250 half. 7250 half, I’m gonna do my best to type this up. It is volatile here and I’ll type up our risk on this one here as well. This one runs at $20 a point, there we go. There we go 52, 53, 54, were long the NQ short the gold NQ off to the races, looking good there. Lot of space up above, this is what I like. Okay? There’s going to be a little bit of a battle coming up here in just a bit. Actually, we’re right at battle point right now.

You can see, look [inaudible 00:14:36] 7256 off to the races. Here we go. I’m going to zoom in here on this one here a little bit for you. Here we go. Watch my chart on the left. There’s congestion back here. So we’re right in the zone, where I’d love to see the market continue to break here. 7259 there we go, we’re off to the races. I’m up $900 up 1000 there’s a G-trade for you right there. Okay. Just sold out five of my six just moments ago to close out seven. Seven and a quarter on that one, got the pop we’re looking for in short order what we’re in that about two minutes. Moving my stop way up here now, put the stop way up underneath that 7241 and a half zone. Right here I want to go 40 and a half. Okay, so if we start coming right back down, very low risk on the trade here relative to the time frame in it, let’s say that. Okay.

7240 and a half is where the stops going to be on that last units. One single unit left, that was a fast one. Sometimes they move fast like that. I know, we’re still holding the gold position. Okay, so down to just one single unit of risk here now, okay. What i got going on there on this one. We talked a little bit about, that whole time relevant stop, sometimes I’m saying hey, it’s time to move our stop, because so much time has passed by we have not got the move we’re looking for and then we tighten up the stop. So, that’s relative to stop. When it comes to taking profits as well. Remember, if you’re trading multiple lots, even if it’s just two, you’re in a position where if you put on a trade and you get a little good fortune, like in two minutes. You’ve you know kind of like Ross Esque getting that instant gratification, which is not my typical expectation here in commodity futures world. But when you get it i mean grabbing $700 in under two minutes and you’ve got you know your risk under control on a final unit. We still have some skin in the game if this market wants to continue to penetrate through here.

Hey, we’re in basically a no lose situation on that trade here, right? We got house money in play, I hate saying that because it’s still your money. You took the risk initially to get into the trade. It’s still your hard earned money, but you know what I mean? You’re you’re playing with essentially profits that you have just acquired, so pat yourself on the back. I’m not sure if anybody was able to jump on that one as well with me here, it was quick. Still short that the gold as well, that’s it unchanged here from our entry point at 128660.

Ryan grab a little bit, nice good job. I know it was quick, look at how we ran up here. When we looked in the rear view mirror, once you remember that markets always look… As traders, we look out the dashboard, right? Up the dashboard of the car but remember, markets when it comes to where they want to slow down, they actually look in the rear view mirror. When we enter, we’re looking forward. But now when we’re in that trade, the first thing I’m always doing is I’m looking this way, why?

Because the keys to the future lie in the past, right? So here we go. So these areas here where the market accumulated volume in the past. That’s what’s pressure in the market right now. That’s why we’re seeing the market retreat, right back to nearly our entry point here. Had a tough time breaking through that, don’t give up on the trade just yet. Remember, the market still could have another leg higher. Okay? We’re in a good position stop is sitting right here at 40 and a half, okay? Right there. Okay. 40 and a half’s are our stop right now. If it starts to come back inside the value area, hey, we’re going to be out of the trade, big deal.

The big trigger for me on this one that evoked me to get into this and really not be a big stickler on the price trying to work limit orders. Look, we had the double top. Oops, hold on a second. My drawing tool’s getting a little crazier. Had this double top here and here. The initial stake in the ground, tempted alongside. Upward pointed trajectory was still in taste. Then the market got choppy. Okay? Market wanted to come down here one last time and explore the bear camp. This is not uncommon. This happens time and time again, okay. On the researchers to the upside, we broke this top here, here, it was time to get long, we couldn’t be fickle. We couldn’t be picky on the price right now. Gold breaking out for us here. Okay?

I’m going to take a quick peek at the three minute chart here to see if there’s any levels that are worthy of note here, not really. So we’re going to keep it on the 10 here on this. So again, I’m still on one single unit here, markets retreating off that. What we needed to do is come down here and before it really gets too far inside that supply area, again, we need to hold right up in here and then give us that second wave higher. And if it does, of course, the smile will get just a little bit bigger. We’re willing at this stage of the game here. We’re we’re willing to have a little give back on that final kind of minority share of the position, right, why? Why are we willing to do that?

Because, we built a profit. For us there’s there’s more to gain by keeping some skin in the game here. Because look at all this room we still have? It still could be a great trade to the upside here on that remaining unit right there, okay. We still have space, we look technically at the trade, we still like what we see. Okay, we just have alleviated much of the risk here on the trade very quickly early on in the trade. But we still got some skin in the game, there’s still some room up here. And there’s a bigger risk getting out prematurely and of the entire lot, then keep it some skin in the game. So like I like to say, you got to let put yourself in a position where the market can surprise you in a good way. Not a bad way, a good way.

Let’s go take a look at gold here now. Here’s August gold retreating down a little bit here got almost $1 on the trade, remember we’re short from 128660, market starting to retreat just a little bit here. Bottomed out not long ago here, let me show you low that bar. Was at 1235 and a half. So nice break there and there’s still some room. I like that we’re starting to retreat off this one. So we’re starting to get into a position here, where now we can start to move our stop down. What I’m looking at is these two levels, when we’re doing multi timeframe confluence, remember, you’re looking at 10, you’re looking at 30. Here’s a line in the middle. Okay? Look where we are over here on your task price compression levels, every one of you should have those. You can see we’re just sitting right on the cusp, maybe falling off the shelf here and make it a run towards 128130. And if it does, again, that’d be nice. Why would that be nice, because that’d be or $500 of contract, will be well on our way. So I’m looking at this level here, point at control 128870 and then just one tick off that pays 128880.

We’re going to come up here 128910. Pardon me 128910. We’re going to take a good chunk of that risk off on the goal, okay? So go to your symbol GCQ9, and we’re going to take a bunch of the risk off the equation. Remember we have that sitting up at 90 and a half right now.

All right, here we go. There’s that market breaking in the goal. Here we go. Here’s the break. It’s happening right now look at that market break, I’m going to zoom in just a little bit so you can see it. We’re off to the races here, we already grabbed some out of the NQ. Let’s see this thing break a little bit further. The other reason for the risk reduction on the queue is remember, the juxtapose relationship typically the indices and precious metals, right? So again, being long NQ, short the gold similar, juxtaposed relationship so I wanted to alleviate some of the risk in that regard. Alright, I’m going to look in the rear view mirror here now on our gold.

Look what we’re running into. We’re running into some levels here we’re also running this some key levels here. We get to do the same thing as we did before on the NASDAQ for me. I’m going to be buying back total of five just now five of the six. I’ve reduced my exposure tremendously, just booked 450 right there. We got we got basically a good situation on both these trades here. Okay? I’ve closed out 450 on the gold, 725 on the NQ, still got a single unit left on both those trades.

We’re going to remember, pull that stop down to 128910. So we have a low risk profile on what’s left on that trade. Okay? 128910 on the stop loss. Our next move, our stops now sitting right up here. Our next move is going to be bringing it down into here and we’re getting close to move that into breakeven here. I just want to see it come down, just a smidge lower not much just a little bit. I want to see if it has a chance to break below this level and then here we go. It’s actually almost there. There we go, at the point of contact when I moved to stop, I talked about point of contact being when you get into the trade. Point of contact when you move the stop you want it to have breach key levels as well. You want that last little bit of line of defense or, I call it the bodyguard to the trade. You want to have a full entourage protecting you from this market. Okay?

The next place I’ll be looking to come down here is going to be at seven and a half. Okay? There we go, 87 and a half. Now we want to stop down at seven and a half member entry point initially on this one is at 660. We’ve trimmed it all the way down to what $90. From $390 all the way down to 90. Again we’ve maneuvered the trade, risk reward is greatly improved. This is why kind of static, if you run static stats on that based upon just an assumed initial risk, versus maybe what I call a TRP1, profit target one or target one, seems a little bit skewed. But there’s method to the madness underway here. 87 and a half is your stop now. Okay?

We’re taking a good chunk the risk, now it’s break and make a new law and the gold here. Here we go. There goes off to the races down to the downside here. Let me bring up NQ over on the right, going to replace our chart with NQ because we’re still long one over here. Here we go. Lots of room to the upside, go ahead NQ you have my permission to follow the yellow arrow, follow the yellow arrow, follow the yellow arrow. Because of the wonderful things it does, because of the wonderful things it does because-

Some of you were singing, I know you were. And you ought to be singing. Green is good today. Maybe it’s my new shirt. Special thanks out to Barry G out in the West Coast Warrior Trading office. Shipped me this fantastic shirt. I have several vices in my life, none of which are too bad. I love bold aloha, aka Hawaiian shirts. Nice thing about aloha Hawaiian shirts, they’re very inexpensive, you can pick them up, oftentimes. Well, I guess you get into Tommy, Bahama, those fancy ones. I’m talking those cheap ones that you can get at most gift shops. On the beach, you can get it for about 10, 20 bucks, so it’s a cheap price to have.

All right, gold, it’s the moment of truth. It’s your big moment gold. Over here on the chart right beneath me here, you can see again NASDAQ looking good. We still like the NASDAQ look at all the space up above here. And the reason you can see that space market profile, don’t like market profile, I can give you some blank charts. Here you go. I’m going to go show you a little NASDAQ before and after without market profile. Okay, here you go. Okay, so here’s your chart without market profile, just a little volume down below, just some charts running all over the place. And here’s your charts with market profile. Look at the clarity, you could see where the volume is, and is not. You can see that relative scale. You can see we’re breaking through some key levels right now. You can see where that next zone of freedom is going to come. It’s going to be coming about 10 points higher from right here. And if we get there, not only is a smile going to get bigger, you’re going to see that we’re going to move to that next tier which comes up around 70 to 90 in the NASDAQ. Okay?

You guys want to keep you guys want to keep looking at these charts without market profile, do they help you? Golly, I have no idea how anybody trades these charts. This is just a guessing game for me over here, flying blind, blindfold me. Buy, sell, buy because it’s down a lot, sell because it’s up a lot. That’s what some people do scary stuff. Let’s take a look at a three minute chart on the NASDAQ over here, chart on the bottom right. Here we go. Market is starting to search higher here, this is where we get to lock in, worst case scenario little better than our entry point. Remember our entry point still on this one, remains on that final unit.

Entry point on the SF 50 and a half 7250 half. So we’re going to put our stop down here 53 and a half right here. Because we’re drilling down into the shorter term timeframe. We’re basically locking in our profits little better than breakeven now. We’ve basically have taken all the risk off the trade here now so that’s a good thing. Alright, so move your stop up on NQM9, we had it at 40 and a half. It’s going up to 53 and a half, okay, just slide it on up. You can do that, I oftentimes like to do it just by using the chart trading feature, slide in on up. We’ll call it quits there for adding a little green to the bottom line, should the market pullback here.

Starting to come back in here, may happen sooner than we think here there we go. So if you get down to 53 and a half, call it a great trade and add a little extra green on top of that 725 we’ve closed down already. Low so far, came in at 54 and a quarter missed me by that much of that final unit of the NQ ended up 785 in total. We’re out of that, nice trade. We’re seeing the gold come back just a little bit here too. So we got remember that 87 and a half, still in play. Stop sitting right up here, at seven and a half. Like to see it make a run down here towards that 128130, that’d be awesome. That’s what we’re kind of holding out on, remember we got just $90 risk on this final unit of gold.

So we’re in a good place. We’re looking at August gold. Remember the contract can make all the difference here. Okay, so this is August 1280, where this is the current price right now. The short position was 128660 short, so we entered short. Right up about right there, because we’re down below the demands on here and back here. We had multi time frame bearish breakout confluence. That’s a mouthful. Multi time frame, bearish breakout confluence, say that five times fast, with a pickle in your mouth.

So you might be as possible, if you’re looking at some quotes that are lower than that, it’s going to be June. You can do this too. It’s airbrush bench press. It’s a lot easier than do the real thing. And you can do it right in your desk. And it’s easy to add weights. But it just feels good just to move your arms like that. As a trader, remember we’re used to moving like this. That’s about the movement we get.

No, rowing the boat, I’d have to be a little more, wait. Clearly I have not rowed a boat in a while. Push down so orgs go up and then you pull it up. So you’re down to the right so, more like this. There’s the robot. Next on the agenda, a new workout trailer for traders, or let’s cycle through some of the other markets here. We’ve got this gold underway. Obviously a couple of green trades locked in, which is a good thing. Let’s just cycle through, to see if there’s anything that we should be paying attention to. We do see the E mini S&P has this big alligators open mouth. Market retreat off that supply area right here, you can see a 2791 and some change, hovering rate on that PLC 10 minute chart. It is above in breakout mode.

But the market did pull back about five points off that supply area right here, okay? Now you got a technical high here and here. Really, would like to see that thing prove its intention to come through that open alligator smell, so and get a little chomp action back above that 2800 mark. Let’s just watch, okay? Because anything can happen. Yeah, we see the exhaustion, we see the big downside break. The comeback trade absolutely looks pretty interesting for us here, upward pointed trajectory green dots on the tips. Remember that means bowls are coming out of the woodwork. Let’s not lose sight of the ES.

Here’s our middle ground here on our Tas static price compression levels. Remember that’s kind of like the neutral zone there from Aqua line to Aqua line that you see over there on the left, okay. Take your eyeballs, here’s your eyeballs. Look way over here. Okay, that’s your middle ground. Aqua line, Aqua line call that like the neutral zone. You know how they used to fight wars, the infantry will be on one side of the other, and they would do the slow march. Right? Set area in the middle, no one has won the battle there. Then when the market moves to one side or the other, it’s either in the bull camp above the top Aqua line or in the bear camp down below. So this thing’s still got to fight through this zone, you can see the clearance comes around 2810.

And that’s right about the time actually, look here. Right about here is your 2810. But there’s still some money to be made even if the market can penetrate in towards that 2794 and three quarters that will make a run towards that zone. Look at all opens up here on the 30 minute. You can start to see us moving up into this territory as well, you’re going to get a little resistance and psychological milestone at 2800, that’s to be expected. I’m keeping a close eye here on this market, it’s trying to fight and stay above that PLC and master point and control, which is the yellow line here. Remember master point and control, is that price corresponding price, if I draw a line all the way over here, that the greatest amount of volume has occurred. Now this one has two of them, right? Which is a typical prerequisite to the alligator jaw setup, right?

You got one up here, and another one down here. In between big old gap, volume gap, and that’s what we look to take advantage of. The market moving through that open alligators mouth, get ready. I’m watching it, the longer this market continues to hold inside here, the more it may be an in the box on the 30 minute. We’re already in breakout mode member supported by the breakout mode on the 10 here as well. Lower bar comes in at 78 and three quarters, still has some risk associated with it here. See how the market is really navigating rate on that. It’s very comfortable in that master point of control yellow line, very comfortable above the PLC. This is a high volatility trade, make no mistake about it.

It’s not a dirty word trading though. Y-E-S, I don’t need to trade both. I like the E mini s&p setup. The NQ, we made some money off of as well, it’s down big. There’s a couple things, this was not a bad setup here as well. It’s very similar, it’s pressed up right on your neutral zone there, on your price compression levels. Re-break back above 5250, could send the market higher again. It’s still very well could be, there’s 14 minutes to go on the 30 minute chart, four minutes to go on this one. Remember, closes are always going to be more meaningful than anything, so close above here still sets the stage for the market possibly to make another break. It’s possible. At some point, you just got to choose where you’re going to focus your energies. They both have potential.

Another round of flush may be underway here. See the one down below the balance area. Don’t want to touch it down there. So take a look the euro currency, which is when we ear marked to keep an eye on here. It’s staying down, so there’s nothing really to do here. We watch it for possible uptick move. Ted had a question on navigator with the magenta bars down here and so for the red, green, all that. It comes out of the box just as you see, there’s really no need to be touching the settings on navigator, it’s the recommended settings are how they’ll come when you add it to your chart. Here’s the end, nothing to do there. Let’s take a look at the Swiss. Let’s visit those gray markets again, use July corn. What I’m looking to see is, if there’s new levels of these are going to shift lower and give us an opportunity to participate. Here’s the week.

Still in breakdown, worked its way through this congestion here. So you’re right here, market worked it’s way right back down below that. That’s quite impressive. Keep an eye on this area about five bucks a bushel here. That’d be moving back up inside, remember we’re going to have that plywood support down below, if we start moving back above that, we’re not there yet. Yeah, that would be weird. Here’s the default settings, which we definitely don’t recommend. Now the default settings are the recommended settings, I say in excess of 95% of users of Tas market profile, don’t have a need to, nor do they change the settings. I’m on default mode, default settings. These are called boxes. Yeah, Tas boxes, same thing default 277 is what the settings are set up for. Which means you’re we’re looking back seven bars, rolling seven bars, okay?

The settings that we have again, everything out of the box comes [inaudible 00:35:10]. The thing I do in addition however, to the default. When you put on market map on your thing, you get the first one right here with a default look back a 50 bars, okay? If I draw a line right there, that’s a 50 bar look back, bar one is what we call it the settings. Bar one’s where you start the analysis from the present. When it says 50 is starting 50 bars ago from the present, bar two is where it ends and at zero when you put it on your chart. This is the market map you get, from 50 bar look back bar one to zero bar two. Because it ends on the current bar.

I go in and I add two extra ones here, and you can do the same. And all you do is, you add another instance of it onto the charts. See how it shows three of them right here? This one I do at 100 bar one, and 51 is where this one ends. That gives me a second map and then this one back here what you can’t see really well, 151 bars from the present, bar two ending at the 101 bar from the present. You see how I create total three of them, that’s how you do it. And the beans retreat and courteous retreat off the high pudding. If you’re up early this morning, this is five o’clock this morning. Look at the breakout star to happen here on the 10 and even the 30. Looks like five, what time’s this breakdown bar 5:10am, Chicago. 5:30 on this over look at nice clean break just a little early.

You are starting to get exhausted here and I look at your navigator here, remember pink magenta color warning bars down here, means market starting to get exhausted. We’re down here at minus 38. Anything minus 40 in that ballpark starts to be oversold. So again, but you still want to see an inflection point, you want to have those Tas boxes, dynamic profile levels come down. Because that’s going to give us kind of the launchpad to look for possibly a trade filling back to the upside, once it breaks above this congestion zone. That’s an if, it breaks above that congestion zone. Let’s go take a look at the gold here. We got new boxes here. Remember that’s not ideal. We don’t want to be in boxes, rather be out of the box down below here.

So you see it shifted here down a little bit, find ourselves back inside the box. Not totally bad, but our stop’s up 87 and a half, so we’re kind of within your shot here now. Here’s copper, here’s bonds staying up there. Remember we talked about, we’re going to look down here but market staying up nothing for us to do. Sure, here’s the Australian dollar. So obviously bearish you got your Tas. You see we’re in bearish breakdown, when we went into the bear camp back here earlier this morning, market went sideways on that S1 and then look we’ve broken just moments ago right down towards that S2 level right here. But again, you can still look at how easy it is to see you’re bearish here, you’re in real break mode bearish here on the 30. No business to be long. Once that E mini S&P is trying to mount a little comeback here. Here we go. Still down 21 and a half. Coming off that low, about five points here, already watch here.

2785, 27785 watch it, E mini S&P here now on the chart. Starting to work its way back in, in the breakout mode on the 10 right here. Still on the 30, you can see we’re hovering down below demand zone, which comes in at 85 and a quarter. That POC level we watched before, it’s 2787. And then we talked about breaking above this technical high right here, that comes in 92 and three quarters that’s a little higher right there. So big gap up there, volume gap, big volume void where I have the big X. X marks the spot. Nice job cow, a dear friend of mine that you know that’s going to be the back of Reader’s Digest someday.

Green is good, Ross Cameron. Unless some herbal tea maker steals it. We’re still hanging in there on this last unit of gold. Believe it or not, we got close within two ticks here on the current bar and within one tick on the bar prior.