Futures Market Summary

I started off early this morning playing a little currency futures before the market opened. Testing the waters with the Swiss Franc I was able to scratch out 30 ticks (equal to +$300 per one contract position). I then turned my attention to the Canadian Dollar (yeah the same one that ripped me a new ass the other day). I pulled in 21 ticks (equal to +$262.50 per one contract position) playing a momentum reversal set up. Both of these currency trades were "clean" and straightforward. I then turned my attention to the Index futures off the open and noticed a sense of heightened stress. I then figured it out. I was trading the currencies off of the 30-minute charts, while trading the indices off of 2,5, and 15 minute charts. Not just faster timeframes, but also 3 times the number of charts.

I was searching for my footing coming off of those currency trades and going to the index futures. Out of the gate I made a mistake (-4 YM ticks). I then went into a non-momentum trade (actually a momentum reversal trade) and ended -15 tick on the ER2. I should have known what was next - two impulse trades. I had the classic lead in with the mistake and a non-momentum trade that did not work out. I should have gotten up and walked around; however, that was not in the cards. The result was -20 YM ticks and -8 ZG ticks. It was at this time that I figured out the direction I was going, stopped and got away until the end of the Doldrums.

All day I was faced with a momentum indicator that was certainly showing me momentum, but the movement today didn't slow down enough for one of my key "trigger" indicators to set up. Therefore, no graceful entries today on the momentum side. With the increased volatility, I am cutting back on the number of contracts I trade with each set up. I am also trying to give the trades a bit more room, as well as staying focused on reversal patterns. It may be too much, but the end result today was a small profit.

The chart below show the action. Doldrums High and Low played a significant role in the afternoon session. As can be seen, price reversed 6 times off the doldrums high and low. Need to keep a sharp eye out for those reversals. You can also see that the Monday and Tuesday HVP served as resting points as well. I will start putting the globex high and low on these charts as well. What is key about these key locations is watching out for trend changes when price hits and stalls there. For example, the downturn from the globex high tended to the Globex low and Tuesday HVP. At this location you need to ask yourself the question "is this where it stops and reverses?", or does it continue. A simple trendline answers the question. You can see the sideways consolidation along the Globex Low and Tuesday HVP, but it doesn't violate the trendline. the volatility around the Monday HVP and Doldrums low created the break and then we were off to retrace the downturn.



The summary for the day is below:

Swiss franc: +30 ticks (equal to +$30 per one contract position)
Canadian Dollar: +21 ticks (equal to +$262.50 per one contract position)
YM: +16 ticks (equal to +$80 per one contract position)
ER2: -23 ticks (equal to -$230 per one contract position)

24-Hour Range: 194 ticks
Regular Session Range: 194 ticks

Monday HVP: 13613
Tuesday HVP: 13675
Wednesday HVP: 13560
Thursday HVP: 13685

No open gap from today.