Warrior Trading Blog

Night School Trading +$2,950 | Steve’s Futures Pulse 188

Steve_8.6

… together here today, okay. You can see the market has, again, furthered its downside, even since we were last together. Market down another 28 here. So what we’re looking for is, for us, we never know when this market is going to start to stretch back. The market’s already been beating the odds on stretching out this S&P to the downside, it’s been kind of a relentless re-break to the downside across levels. You can see this, even since the end of the session. Let me go find that here, right about … Right here is the approximate end of the session, a 30 minute time rise. But, what I’m watching here is this, this top of the box area comes in at 2803 3/4 right here. We’re starting to kind of flirt with a break up above that. Now, remember, this 30 minute timeframe gets precedence over the 10, okay? So in some instances, remember, when we’re trading, we may laser focus our trade on the longer term timeframe. In the same fashion, we could do that with the short term as well. But, whenever it can be the longer term timeframe that’s driving our decision, we feel extra good about that.

Look at our navigator in both cases, you’re way over sold, exhausted, and like I said before, the market had already kind of been beating the odds with its continual break to the downside. It’s just, for us, we never know when we’re going to get to that last bite of meat on the bone, and then there’s nothing left to eat. For me, looking for that, the market to maybe give us an early turn this evening, and possible positioning on the long side, would be what I’m looking for. Places, in terms of point of contact. Remember, when I use the word point of contact, I’m talking about when you push the button to get into the market at that exact moment, what’s the lay of the land. Do we have another level down below us, which means, for me, it’s going to be important when we get into this trade at 2803 3/4 rate at that, maybe 2804 would be a good point of contact, because the moment we get into the trade at that 2804, we’re going to have that support from that supply area.

Let’s take a look a couple other markets that can give us enough movement here at this time of the evening. You can see the 30 minute chart is actually already starting to break here on the crude, a little bit earlier about 20 cents ago. Nice establishment. Some of you, I think, are talking about the crude oil here, but we started seeing about 20, 25 cents ago, the market start to establish itself on the 10. Again, the sink will break at any moment in time. Let’s go back to the E-mini S&P, that’s going to be my first trade here, it’s looking like, if all goes well here. We’re at 2804 right now, just moments ago. I got 2803 3/4, actually, by the time it hit the buy button, I’m low six units.

Typically, in night trading I’m not going to be trading super large. But, I guess I’m in at that 2803 3/4 right now. One thing I do want to take a peak at here, I want to take a peak at my five, where we do looks like we have some levels here already, because I’m looking for some inflection points on where I can put the stop, to not necessarily have to work this ginormous 20 point stop. It doesn’t look like much now, but again, from top to bottom, that’s 20 points right here. So I don’t want to risk that much on the trade here. So now I’m looking at this five minute chart. I’m also going to peak at the three, a little shorter term, to see what kind of levels that we have that I can get on the other side of, because even this is down here about 10 points lower. I prefer not to have to come way down that far here. Let’s take a look, we’ll find out here in just a moment here. Good place to, by the way, to be thinking about adding on this one, if we get the chance. You can see as this market pulls back, there’s a couple places too, the congestion around 2795, also 2790, which is just above that 2789 3/4 mark right here.

So remember, we still have some options. I did kind of a smaller, for me, a little smaller unit size, threes and sixes are a little bit on the smaller side. So I still have some room to add if we get a pull back and see this market maybe kind of sitting on that 95, or better yet, 90 area. You can see on this shorter term three minute chart, 2806 is going to be kind of that new supply area that we want to break above right now, okay?

Depending on the platform, again, we’ve talked about this fairly frequently. It’s going to be contingent on our platform, we don’t have a way to universally draw, because the inputs from your platform, which are distinctly different from platform to platform, relies upon those inputs to generate the outputs. So don’t be frustrated by that, that’s actually normal, albeit not ideal. Scanner and The Edge, since those are standalone tools, we control with a pull output. We don’t rely upon an input to generate the output.

You see market retreat in here, look at this. We’re coming on this little shelf right here on the three minute chart, start to breakdown here 2800 1/4. Watch 99 1/4, now this level right here, we’ve talked about this 2795 zone, look at the congestion that we get down in here. I like us starting to get back above the POC, or I like us pulling back into this area around 95. It doesn’t look like much here, but look at the distance here between these boxes. When we have that separation between these boxes like this one you see, this one actually has got quite a bit of space here. You’re looking at 25 points, about $1200, something like that or so.

Scaling out of a trade and generally limit order. You’re going to just limit order, so sell limit somewhere up above, if you’re looking to scale out. You can use limits to scale in as well, especially in these wild markets here. We’re stating to re-emerge here, we’re starting to try and get back above that 2803 3/4, still got a little bit of work to do on the 30. Above this POC is interesting here too as well. You’ll see me flick back to the 10 minute, because at some point we may get some levels that shift now. For right now, again, we’re relying heavily on the navigator here, and we’re relying on our levels for 30 here. But, navigator on the 10 is still supportive of our cause.

You’ll never believe what happened to me today, if you want to guess. I was out in the yard, actually moving some big flower pots around the backyard. Guess what happened to me today. What do you think happened to me today? Come on, you can guess. Come on. Yeah. Good call, Joe. I got stung, not by one bee, two bees. Got stung by two bees. I was moving this big pot and putting it on a different place on our front porch, and my leg rubbed up a little against some kind of little bush, got stung on my toe. Then, I felt it right away, and I knew it. I said, “Gosh darn it.” Then, one … You know how sometimes they get all riled up, one came up and got me right on the cheek. Right here. Feels weird, you know how it kind of numbs a little bit there. It feels like I just went to the dentist. Don’t worry, had a little Benadryl, I’m good.

All right, we’re just hanging tight here, just a little bit down below 2800. Let’s go take a look at the crude oil here. This one actually, I like the base that built on the 10 here, and there it goes here. There it goes. Watch it come up here and test this as a 5470 zone, we’re about nine cents from that. Here’s the congestion, congestion on both these. Kudos to anybody, I think some of you were talking about the long side of this a little bit earlier. I like it … This right here, when one, two, three, four, five bars, you had basically a 50 minute window here where the market did not run away yet, now it’s run away. I do not, for me, I don’t want to hit the buy button up here. When we looked at it here together, it was already kind of up here. I was waiting to see if we’d get a chance to come down around that 5430 area. We didn’t get that. So again, I’m just going to continue to be focused here on the ES.

Look what just happened here. Boom. Just like that. Holy cow. Guys, I don’t have to tell you, but I’m up $2600 just like that. For me, again, this is free money for me. Just sold out five units a moment ago. What was my price? I just closed out 2437, closed out at 2813 1/2. 2813 1/2, I’m down to a single unit on this here one. We get to move that stop all the way up to 2801 3/4. Okay, so we can move the stop right here, 2801 3/4. Just like that. Did you guys get long on that? Who’s long on the E-mini S&P? That’s a beautiful thing right there.

 

There it goes, it keeps going higher, guys. Here we go. We’ve got that final unit here, it’s a free trade, 100% here, night trading. We’re up $875 and counting on that final unit, can you believe it? Just like that. Oh boy. Those that didn’t want to finish brushing their teeth early and join us today are going to be pretty not very happy. Boy, we’re coming back in grand fashion with our night school, aren’t we? My gazoodness. This is what it looks like. You can see I closed out 2437, I bought a total of six, I sold a total of five, I’ve still got that one running of $600 profit. We’re over $3,000 just like that. To heck with brushing the teeth, right? Markets pulling back here on this one, pulling back a little bit. I’m selling out my final unit.

 

There we go, let me tell you what I got here on that. Where did I get this here?

 

2814 3/4. 2814 3/4. I made a mistake there too. Do you know what I just did moments ago? I accidentally hit the buy button, and I actually added at 2815 1/2, and I caught it right away, I realized it. So I offset by selling two at 2814 3/4. You see, I want to show you this so you guys kind of see what that looks like. Look right here, you can see the buy, 8:09 and 31 seconds, that’s our buy six. We initially put our stop in, 12 point stop initially, because we knew it was going to be volatile. Then, we sold out five at 2813 1/2, that’s where we grabbed over $2400. But, look what I did, I goofed up. Again, proof you don’t need to be perfect with trading. But, I actually added at 2815 1/2, I caught it right away. I looked at my net position, and I said, “Plus two,” I’m like, “Wait a minute.” So I quickly sold out, you can see, at 2814 3/4. So that’s not bad. So actually made a little mistake there and lost 3/4 of a point. So we ended up on that one 2950, right here, on seven by seven, just to make it a little confusing. Okay?

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