This morning was choppy and the volume looked suspect to me for a selloff to occur. I wanted to go short with size at the open, but I was cautious and stayed out and only took a couple of scalp trades. I decided to open up my old indicator chart to see how it would have traded the first 2 hours, and found that it would have traded way better than me today. The relationship between YM and ER2 was unusual this morning, with the pair switching leadership a few times today.
P/L= $30
Market observations-
The 7:15 time reversal struck again.
Check out Traderfeed on how Dr. Brett uses the avg. volume for each 15min bar on ES to gauge the market. Knowing this information was helpful this morning in being able to determine if we were going to selloff. I also watched one of my recordings last night of a day where we sold off, and the difference was that the selloff day had much heavier volume and the NYSE TICK was making lows in the -800 to -1000 range, and NYSE A/D had wide range body candles to the downside. In other news, ZN continues to the upside. I expect when ZN pulls back, the stock indices will make new highs, and then this may provide a good setup to go long ZN and short the stock indices. I would expect to see this move within the next 7 trading days, but as always I will be trading what I see and sticking to my system.
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