Emini with Seasonal Indicator Forecasting Santa Claus Rally (daily chart)
Here we go – the Santa Claus Rally is on it’s way. It set up perfectly Tuesday into Wednesday and we’ve had a gangbuster 100 point ride so far. Although the magnitude of the strength has been a little bit of a surprise, the timing was forecast in the last video (3:00 minute mark).
Really only turned my attention to seasonal trades in the last year – and I’m not going to change my day trading technique. But they’ve all worked out perfectly this year: Tax Time, 4th July, September Effect and Thanksgiving. This article details the 5 seasonal trades I’m following and includes the seasonal indicator code.
Emini Bottoming Sequence (40,500 tick chart)
The bottoming sequence on the Emini was a classic too. The 40,500 tick chart is shown above and here’s how the sequence goes:
- Volume momentum slows and reverses after Exhaustion Selling and First Bullish Divergence signals
- Short covering rally with explosive volume but Pros take the opportunity to Short one last time
- Pros cover at Lows in 1,960s and price forms an End of Trend signal, and
- Uptrend leg really gets going when Pros “jump the creek” and bust through cyclical resistance
We’re on the road again – this time off to Rome for Xmas and currently sitting in Munich airport. Anxious to see what Italian Internet speeds are like – hopefully fast and stable. And I managed to crash my own website in the last few days. If you saw it and thought it looked a mess – it was all my fault and thankfully not a hack.
Good luck with your Emini trading.