Emini Trading Update – Monday 4 Feb 2013 (9:51)
Well, looks like we’ve found that left shoulder. Hope you saw this weekend’s chart roundup and were prepared.
Overnight waterfall declines are always a little hard to trade. The big move and the easy points have happened overnight – but the market will continue to ease down until you see Exhaustion volume during the day session.
So my strategy on days like today is just to get short on any signs of weakness. The first one was a cyclical resistance on 500 tick chart (which didn’t work out). The next two were Amateur up bars on the 1,500 tick chart that got broken to the lows (both worked out).
And you’re usually safe going with the overnight trend until that Exhaustion volume comes in.
Here’s the feature article on How to Trade Overnight Waterfall Sell-offs.
Links of the day …
Brilliant analysis from ZeroHedge that explains why the Euro has been so strong.
And great analysis from Business Insider showing where the Amateur money came from that has fuelled the last run up in equities.
Good luck with your Emini trading.