****Please Note: We will be trading September (U) Contract beginning today rather than Monday since there is now greater volume in front month. Please adjust your charts accordingly.
Well…I must admit…I was not expecting a Trend Down Day yesterday…My expectation was for some back n fill price action within context of 1936 – 1940 zone (June Contract), given the strength of recent bullish action. Previous posts have warned of increased long position risk with potential for more important “Cycle High” (see June 10th and 11th blog posts). Actual Cycle High came in spot-on June 9th and was confirmed on the 10th…So we nailed that one…2-Stars** for Me (ha-ha). What I didn’t expect was a sharp reversal down so soon, as topping formations tend to take a bit longer to form…So this is a great example of “Anything Can Happen”…But We Trade the Probabilities! Early recognition of failed hypothesis is a critical skill that a Trader must develop, so adjustments in trade strategy can be made “in real time” to keep aligned with the Market’s dominant force.
No worse for the wear as we have been primarily trading from the short-side of price action since identification of cycle-high potential. Levels will now be adjusted for front month (U) contract.
Prior Day Low (PDL) 1917.50 – 1918.50 zone will be marked as initial support…Violation of this zone targets 1914 (STATX)…Stronger support zone between 1908 – 1912. Initial Resistance is 1926 – 28 zone…IF price can penetrate and convert this zone THEN upside retracement potential to 1930 – 32 zone. Further adjustments to levels will be tweaked in the Trading Room.
Seek Excellence in Your Trading….Not Perfection….ALWAYS USE STOPS!
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.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS