Day Trade Emini S&P 500 NASDAQ 100

5 min Emini Nasdaq 100

Hi,

The reason is pretty obvious... Moving averages are sloping down.. This means that we should be looking at shorting rather than going long..

In order to do that, we have to look for stochastics and Short-term MACD cutting down from the overbought line..There were several cases of this happening, but candlesticks were not really pressed against my longest moving averages when this happened. What this means is that we don't have a good risk/reward.. Don't risk your money in such market conditions... Save your bullets for any day..

Posted by Michael Taylor at 5:33 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Moving averages are sloping down... Price gapped down from the opening bell.. Today is obviously not a day to go LONG..

I waited for a chance to go short and the chance came when stochastics and MACD was cutting down the signal line, I shorted 1 contract at 1923 and exited at 1913 when stochastics cut up the signal line again.. Profits of $200.

Posted by Michael Taylor at 5:01 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Today's trade is another classic pattern. Price plunged from the opening, I did not enter... I was waiting for some confirmation.. It then rebounced and found resistance from the moving averages..

There is good risk / reward if you place your stop loss just above the moving averages.. The resistance from the moving averages held and stochastics and short-term MACD started to move down, cutting the signal line.. I entered one contract at 1952 and exited at 1939 when stochastics and short-term MACD cut their signal line and started to move up.. Profits of $260.

Posted by Michael Taylor at 5:57 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Market is still in the undecisive stage... But there is a long signal today.. The classic long signal..
First and foremost, moving averages are not too close to each other.. and slightly sloping upwards.. This is pretty important..

Price crashed down all the way from the opening bell to find support at my slowest moving averages.. This was coupled with an upturn in Stochastics and Short-term MACD... I longed 1 contract at 1959 ..

Notice how price found resistance once more when it reached the opening price? Stochastics and short-term MACD also turned down.. I exited at 1969 with profits of $200.

Posted by Michael Taylor at 5:51 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The same situation continued from yesterday... If you based your trading decision only on short-term MACD and stochastics, you will find a LONG signal,

But, if you are watching the market on the whole, you will notice that the moving averages are still flat, candlesticks have short bodies just when stochastics and short-term MACD are cutting the signal lines.. This isn't the right condition to enter the market..

Novice traders will look at this chart and say.. If he'd been long, he would be making $$$... You can only know this from hindsight... My judgement is based on real time market conditions and they did not seem right to make the plunge.

Posted by Michael Taylor at 5:33 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emin Nasdaq Emini 100

Hi,

How is it going on lately? The market is quiet again.. The number one factor that I dislike is here again..--> Moving averages are almost flat.. You need at least some kind of slope to trade... whether up or down.. it dosen't matter..

If its up,, high chance we will go long,, if its down, high chance we will go short... Next, look at the stochastics and short-term MACD is this something you will expect in a good trading market? zig-zag patterns with no clear symmetry, close to the zero line.. etc.. Is this good for your trading? Obviously no.. STAY SMART AND STAY OUT.

Posted by Michael Taylor at 5:45 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The market i s rally for now and what remains to be seen is how this small rally can carry on... There are bound to be slight corrections even in a rally,, and it is unlikely that price will just sky rocket all the way up up and up...

You might think that shorting here is dangerous. But look at it carefully, my shorting is not without reason and in fact well supported.. Furthermore, there is good risk/reward, if it doesnt work out... I dont lose that much either..

Reasons
1 Price had been above the moving averages for the most part, the moment it cut my green line, I shorted 1 contract at 1955.

2 This was accompanied by stochastics making a turning point and cutting the overbought line.

3 Similar case for the short-term MACD which cut its signal line..

4 My stop loss is at 1960.5, just slightly above the moving average.. Good risk / reward...

I exited only when price rebounded from the moving averages followed by an up turn in stochastics and short-term MACD at 1944.
Profits = $220

Posted by Michael Taylor at 5:47 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

If you look at the moving averages, it is slanting upwards nicely... But at the sametime did you notice divergence with the Short-term MACD? This is a good market to go long only on hindsight...

In live trading, I can't find any good signals to go long.. There is a strong surge at the opening bell.. but that was it.. afterthat, price moved in short spurts... with short bodies... dancing aboving the green moving average..

There was no real pullback that we can use to enter the market. Don't be fooled by this chart that it is daytrading is easy.. This chart is on hindsight.. in live trading, you wouldn't see this. You will be wondering whether price is going up or down.

Posted by Michael Taylor at 5:40 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

What is the market doing right now? It is in an undecisive stage.. The candlesticks have short bodies with long shadows, moving averages are almost flat. It is not a market which I am interested in entering.. Waste of time... Low reward high risk... Be patient and wait for the right opportunity.

Posted by Michael Taylor at 5:34 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How is it going lately? The market is in a turmoil,, but at least today there is a short upturn.. It has been some time since I last went long with some confidence..

Price pulled back to the moving averages and at around 11:00 am, you can see that Stochastics and short-term MACD were already forming a pattern to cut up the signal line. I was getting ready to go long... and the rebound from the moving averages provided a good chance...

I longed 1 contract at 1864 and only exited when Stochastics cut down the overbought line at 1882 with profits of $360.

Posted by Michael Taylor at 5:49 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The moving averages are sloping upwards... and price gapped up today.. on hindsight it seems like a good opportunity to go long.. Or is it?

If we were to go long, we had to wait for a pullback and rebound from the moving averages, plus stochastics / short-term MACD cutting up from the oversold region. But look carefully, there is no signal to go LONG...

Also, I did not like the short-bodied candlesticks.. this shows that market is undecided...taking small steps at a time.. it is difficult to make money in such a market...

Posted by Michael Taylor at 8:45 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,
How is it going? Market is in a zig zag fashion again today... What I dislike most is the downward sloping moving averages.. On hindsight you might think it is possible to do a range trade --> by tradin between the channels..

But ask yourself what is the risk/reward and you will immediately realize that this is not feasible... Although there appears to be several potential signals from stochastics, this really has to be interpreted on a wholistic basis.. Look at the situation on a whole, dont just look at one technical indicator.. and the answer will be clear.

Posted by Michael Taylor at 5:40 PM | Permalink | Comments (0) | TrackBacks (0)