Following a three-month hiatus, I’d like to welcome you to the PolarisTradingGroup Blog and Trading Room.
Capping a volatile week where S&P mini sold off 50 handles from 1780’s down to 1730’s where there resides Major Support, only to have prices regain those lost 50 handles and then some, price is currently at 1790. We anticipate continued volatility during 2014 in what we will call a “Traders Market”. If the VIX can stay within a range of 15 – 20, then we should have some very nice trading opportunities.
Friday’s target range we stated for members in the trading room was 1786 – 88…Those targets were achieved with some robust short covering. Today is Cycle Day 3 and all cycle targets have already been achieved…This leaves the question of whether the “Other Time-Frame” trader will step-in and buy at the current prices or will they view current prices as selling opportunity.
We need to be a bit more cautious with new longs at current prices, deferring more to the sell-side with proper alignment in price structure. There is wide price acceptance between 1766 – 86 with Highest Volume Node (HVN) 1776. Pullbacks to that level could provide good tradable longs…
IF the Prior Day High (PDH) 1794 is penetrated, THEN upper targets are 1800 – 1805 within the StatX Zone. Initial pullback to 1782 is buyable with some caution noted above…1776 appears much stronger.
As always, remained disciplined and use stops to protect capital.
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.