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Warrior Trading Blog

Under 30 Minutes Today +$1425 | Steve’s Futures Pulse 148

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The answer is ‘yes.’ Today, we closed out our 14th consecutive green trading session to keep our May 100% perfect, knock on wood. Today, it was all about the E-Mini S&P. In under 30 minutes worth of work, we found an exceptional buying break out opportunity entering long at 28-45, and we found three scale out opportunities, as you’ll soon see at 48 and a half, 49 and a quarter, and last but not least, at 28 54 and a half, to close out 14-25 on that six unit trade.

In today’s futures pulse, I recorded it live when it was going down, so enjoy the insight and I look forward to meeting you back at the markets tomorrow as I go for 15 consecutive green trading days. Will I do it? There’s only one way to find out. We’ll see you soon. Bye-bye.

Good morning, traders. Happy Monday. Trader Steve here for Futures Warrior. Let’s get right to work here. … Picked a long side here at 45 even. I’m going to put that, that’s our first alert here, 45 even, long E-Mini S&P. Let me type it up for you. That’s the chart you’re seeing right here. We’re starting to see the market establish itself above that 42 and three quarters. I like being long; 28-45 long, E-Mini S&P. I’m long six. Let me type this up right now.

I want that stop to go across the highway. We want to leverage this all in our favor here. Market is starting to break higher here at 48, guys. This is the area up here that we’re looking for this market to get up. It could get up there in a hurry. I want to stop across the highway here. There it goes, 48, 49. I’ve got 200 bucks a contract on six units. I’m up 1200 bucks here, just like that. I can’t even finish typing the alert here. … Hold on. 35 and three quarters is the stop. …

So I’ll give you the risk on that. 45 minus 35 and three quarters gives you a nine and a quarter. Remember, you can trade the micro E-Mini symbol, and MES, if you want. … Follow to markets. We do. We’re working wider stops, which of course, comes with … greater risk when you’re trading volatile markets; so not for the faint of heart today. 462 a contract; if you’re trading the E-Mini S&P. This is where that micro could really come in handy. You could trim that risk in half by, let’s say doing five micros. …

High this bar comes in, you can see at 49 even. … Here’s that 70% zone, that value area. Let me see if I can’t get a color we can see here. Nope. There we go. Here’s our value area from our market map. Remember, this is where 70% of the volume is aggregating, if you draw a line over to these prices over on the right. This area over here, this is where it’s the most popular place for buyers and sellers to agree on price. This is where we start to see the steep fall off. See where the market pulled right off here on this trade? This is where … Look at the steep fall off here. It goes from something to a whole lot of nothing here.

This still ends up being an exciting proposition, especially if we start to get above that supply area. See, that comes in at 51 and a half. If we can get there, and if we can get that 51 and a half right here, again, you’re going to see some space between the boxes. So from 51, you’ve got five points to run higher. That’s going to be a nice big deal if we can break above there. We’ll see. For now, we just want that market to stay above master point of control, and preferably stay above that 42 and a half area. …

Here we go. Market’s up ticking here. … At 47. I got two points on it. That’s a good start. … So again, key area I’m really watching here is if we can get above this supply area, this one comes up here at 51 and a half right there. See that? If we start breaking above that, then we got five more points we can grab here as we make a run towards the next level. Here we go. It looks like it wants to give us that pop. You can kind of just feel it. It’s kind of coiling up here. There we are, 40, 48 and a half. This is 49 for the high of the bar here. Watch this here now. Who’s long on the S&P? I know it’s volatile. Anybody along the micro E-Mini? …

That market’s wanting to stay inside this bar here. … Sold out. I want to sell at half that position, 48 and a half. Just a risk management move here. Still got the stop down there, 35 and three quarters; so still a wide stop here. New levels we find ourself back inside of right now, so this is … I want to see if I give this thing a chance to give that break above. It seems like it wants to. See how it kind of is staying up above that supply area. 48 and a half is first place, and it’s basically taking profits inside this bar right here; which put in that high, you can see at 49 even. …

You can see over here, your price compression levels. We’re navigating off that S3 level down there. … We’re trying to migrate through towards that, from the underside of that S2 level; see if we get there. Watch that 49 level right here. You’ll see it start to pick up some steam, and then again, that area I’m watching right here, that level right there is 51 and a half. If we break above that, it’d be good for the trade.

All right, just took $525 out of the market right there. Took three of my six units off, running with 600. I’m up over 1,000 bucks now, just like that. Here we go. This market could get going real quick here. … Here we go. We’re sitting right on that 49 level, watch that 51 and a half. If we can get above 51 and a half, you’re going to see this smile get a little bit bigger than it is right now. Here we go. It’s right here. If we get the pop, remember a place we want to maybe look for our next … the area that I’m going to look to see … get this market going before I’m going to get down to just my runner, is kind of as we start to approach this 56 area.

The other thing I’m seeing here is this 54 and half zone, so a little bit ahead of that might be wise as well. I’m going to call it 54 even, so at 54 even, I’m going to look to take two of my remaining three units off. 54 even, and then I’ll just have my runner. I get myself a free trade here today. We’re also quickly approaching on a 30 minute time frame. The 51 and a quarter, so that could offer up some level of resistance. So again, we’re looking at this supply area on the 30 minute time frame where we are there, and then we got this level over here. That’s at 51 and a half. It actually has me wanting to be aggressive right here. I’m selling out two units right now, just sold out two units. I am down to my runner now. …

So I’m down to a single unit here. I’ve scaled out of five out of six, closed out $950 right now. We got two 25 running. Time to move my stop up here. My stop’s going to come to 43 and three quarters now. It’s coming from 35 and three quarters all the way up here to 43 and three quarters. That’ll assure a nice victory here on this trade, okay? We’ve taken all the risk out, and nothing but good things can happen from here on out for us, okay? That’s 43 and three quarters on the stop.

There we go, 51 and three quarters. Off to the races we go. … Remember, we still got one unit left here, okay? We bought a total of six initially at this thing at 45. … We’ve been able to scale out. We scaled out three at 48 and a half. We scaled out another two at 49 and a quarter. We’ve got one running here. We’re at 52 last. This is kind of that cherry on top here. We’re up 350 on that last unit. …

My stop’s moving up to 48 and three quarters here, okay? So now we started with a stop here. We moved it up for 43 and three quarters. Now we’re moving up to 48 and three quarters, okay? Locking in a worst case scenario win on this one here as well. … 48 and three quarters. We’re going to let it still run and see if it wants to keep running, because there it is. It’s pushing on the high. … Here we go. … In the green, 14 consecutive days. …

There’s another little pocket here if this market can work its way through this … kind of pit stop here. Again, this starts at 56. Around here, you’ve got 54 and three quarters, so run at 54 and three quarters to call it 56 and a half. There’s some resistance levels out there. Our stop now is sitting right here at 48 and three quarters. Remember, we’re long for 45, so it’s going to be … Even if we get stopped … If we get stopped out, we’re still going to make money even on this last unit as well; but let’s see what’s possible. …

It’s good news that we’re breaking on the 30 minute up above here. Now, you’re starting to see some steep congestion up above here. That’s why I’m being fairly aggressive early on in this trade, because look what we have here on the longer term, 30 minute chart. You’ve got all kinds of congestion up there as well. Okay, so we want to be mindful of that. …

I want to make this nice and big here, and kind of talk you through the chart. Here you go. Okay, so the trade today, again, keeping us green for our 14th consecutive trading session; and perfect in the month of May. We got long here at 28-45, right where I’ve circled, right there. We initially worked a wide stop because we wanted to be across the highway, as I say; means on the other side of all three of our value area levels, okay? The red, the blue, and the green line; that identifies the short term projected value area. Then in the background, we also want to be on the other side of all of these red bars that are extend furthest to the right horizontally; because remember, that’s all that congestion. It’s the most popular place for traders to transact business.

We want to be on the other side of that, so we did put our stop down here, 35 and three quarters. Real quickly and early on in the trade, even though at first glance when you look at this, you say, ‘Whoa, that’s a lot of risk relative to where you’re taking profits.’ I in the room here, often times call that the apocalypse prevention plan because it really is kind of like your worst case scenario. If everything goes totally awry in the trade, it’s the line in the sand that you want to know you’re going to get out; but really on many of these trades, if you’ve been in here long enough with me, as of course, many of you have been in here months with me, you’re able to see that we’re quickly taking risk off the trade. That first move you could see was just a … We took over 70% of the risk off the table. Then, our next trailing stop here actually took over 100% of it off. It’s worst case scenario profit is where we stand right now on this one.

Okay, I got $950 closed out because we did take profits on three of the units at 48 and a half, and then two of them at 90 … 49 and a quarter, leaving us with that final unit. It looked like this long, 45, rode this up for half up at here, 48 and a half on … We took out three of the six. Two more came off up here at … right there. 49 and a quarter, all right, two, leaving us with one final unit. We’ll see if that thing comes down here. But we still got space up here. This is what we’re looking for as market profile traders. We love all that open space where we can see the back of our chart. …

We got the trailing stop, I told you on this one here, at 48 and three quarters. We’ve really brought it up, so it’s sitting right here. If it comes down another point, we’ll get stopped out. This is the way you want to get stopped out. You want to get stopped out where when you do that, you’re actually closing out more realized profits, as opposed to, of course, losses.

Nice job, Jose, grabbed $500 in what? A half hour’s worth of work? Good job, Jose. … You got to be having a good little green streak yourself from what I can gather. Keep up the good work. …

Low of the current bar here comes in at 49 and three quarters, so about a point above where we’ve got the … got our stop. … I don’t want to put any pressure on … Any unnecessary pressure on me, but I did tell my kids if I finished off the month of May completely perfect, I’ll take them all out to Disney World and Universal Studios; just for the heck of it. I do like to set family goals, too. If we’re going through a good … I hate using the word ‘streak,’ because this is my method. It’s just markets are good. They’re volatile and very conducive to the style I’m trading right now; but it’s been a very good month financially, as you can imagine as well. I did, in fact, put that out there.

I said, “If we finished … if daddy finishes off the month of May perfect, I’ll take you guys all out to uh, to the park, so.” So stay tuned. We’ll take you along for the ride.

So make no mistake, the countdown has begun. There is after today’s session, there’ll be just nine sessions left in the month here. That’ll be my best effort to finish green. Now, I’m not going to torture them by on the very last day, like intentionally taking a small loser. ‘Oops, we’re not going!’ That would just be absolutely cruel. … Heck, we might go anyway; but don’t tell them that.

Here we go. We’re getting a nice little uptick here again, 28-52 and a quarter. We’re watching this right here. Remember, we’re still long from 45 back here. … Here we go. We’re going to get that break above that prior bar high, remember that comes in at 53 and a quarter. … There we go. Now, still keep an eye on that 54 level up here. If you get to that 54 level, market may have to work through some of this congestion here. When you see the market kind of go through a pit stop on the way down like you do here, remember on the ride higher, market’s looking in the rear view mirror. Sometimes it likes to revisit that oasis on the highway, right?

Here we go. We’re at 28-54. We’re at that level that we just talked about moments ago. Good trade. That’s nine points from our entry at 45. Good for you. We’re up 450 on this trade and running. I’m going to take a quick peak here at the three minute chart. This is live. … I’m looking left of the chart. When this market starts to kind of navigate through space ex, it starts heading up into outer space there. Very predictable breakout mode for us this morning. We’re looking left of the chart. We want to be aware of these levels. That level right here comes in at, let’s say at 53.95. This is a three minute chart now. I don’t know if you saw that. I moved this … drilled this down into a shorter term time frame so I could see what it looks like.

Then, on the 10 minute chart, we got one level back here as well, but we’ve breached that. That top of that one came … Oh actually, I’m sorry. It’s right here. Bottom of the box, 28-56. We are right there. Now we’re pressed up right against this, right now. I’ve got a few things to do today, so I’m going to deploy my life stop on this one. I hope you guys don’t mind. It still looks like it could have a way to go, so if you got time to be around the computer here, I’m going to be all done trading here in what? Approximately 35 minutes here today.

Just sold out my last unit a moment ago. Took 1425 out of the market in about a half hour. We’ll call it a good day, and my 14th consecutive green day. Let’s do again tomorrow. We’re going to go for 15 traders. Trade well the rest of the way. So long. …

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