Today the Market opened and Initially drove pass our LIS (3700). Failed to take out the Poor High of the overnight session. B period failed to continue the drive up and came down and took us to 3659. C period opened we continued OTFD (One time Framing Down) and left single prints.C closed and left us with a Nice taper D period opened and we had some nice short covering/Inventory correction that Cleaned up the Singles and stopped the OTFD, D Period drove us up to 3689 but could not continue past the ON Half. E period continued this drive higher and actually tagged the ON Half.
Trade idea 1 for the day:
E period opened right around VWAP drove 4 ticks down got back over vwap Created a Mechanical HI (D and E period same high at the time). We pulled back and I initiated my trade when we touched VWAP and trailed it up ultimate Profit target Was ON HI but was stopped out in profit for a nice winner. Reason I took the trade D low never took out C low, D corrected Inventory and filled singles plus E period continued the buying momentum at the time being.
E period finally stalled out at ON Half and came back to our 3667 level. F Period opened and We broke the E low, although we broke the E low there was no momentum of sellers underneath the 3959 area (We talked about this area on the Mansion Stream in MicroEfutures.com room, If you haven't joined check them out!) This area was a LVN and we never transacted or put volume in there we kept the shorts trapped that were underneath that LVN (Low Volume Node). F period drove back up but could not clear the close. G period opened and we broke under the Over Night Low but only for 1 tick without the continuation of selling G period rotated back up and took out the sellers that were sitting at the close. H period provided an upward movement the Intraday position was built down at the open and our key level 3676.25.
Trade Idea 2 of the day:
As H period had position built and we began to run up to LIS. I entered my trade under the LIS and felt since position was in hand that we should run the stops over 3700. We caught the stop run and got out around H high.
After the stop run, I period came back and tested the open and stayed in a range between the Open and Overnight Half. J period opened went to Overnight half and drove from there I had my first Failed trade at the J high.
Trade Idea 3 was the same concept of Trade Idea 2 to catch the stop run before it happened but the stop run over H high did not happen.
J period returned back to Overnight half and we can see the volume was being put in around 3691. K period opened and provided the stop run up over the H high. We could not however get the push up over 3710 and test the Overnight hi or Test the Previous high. L and M provided to very calm and contained even though it was Quad witching, we had our normal end of day movement of inventory but stayed within the 3700-3650 level. This could be sign to me that there was pinning going on by MM also a 3 day weekend as we have holiday Monday.
Overall: The Witches brew wasn't that strong
There was no crazy potion for the bulls or the bears this quad witching day, like stated above the end of the day seemed very contained minus the usual 15 min sweeper to close out the day. Looking at the daily session we stayed within previous day trading range between 3711-3640. Monday's session will be very slow as it is a holiday but if we can begin to clean up this area and hold settlement come Tuesday we may begin to see a shift to the upside. our big test would be the gaps above. Big level test is 3735.25.
The downside still may be intact as we have overhead supply so if we cannot hold settlement come Tuesday we will continue to slide lower, and test the waters at 3600. Under that Big target is 3545 area. (YIKES!)
Have a great weekend everyone catch y'all on Monday