I came into today looking for directional moves in many of the futures markets. We had a lot of volatility early last week, then some consolidation in many of the markets late last week. I believe that volatility is cyclical; so it was reasonable to expect a jump in volatility today. The S&P futures were one of the markets where volatility had contracted, and i was looking for a directional move today,Below is the daily Trade or Fade report for the June S&P futures, sent out last night. Today was labeled a “Trade” day- Friday had the narrowest trading range of the previous four sessions. As today was a “Trade” day, Iwas looking to buy a rally above resistance at R-1, or sell a break below first support at S-1.
Trade or Fade caught a good trade today.
When I got to my desk this morning, the S&Ps were above the long entry point at 781.50.Luckily they dipped back under at 8:10, and rallied back over about 8:20, triggering a long entry.R-2, the first profit target at 796.25, was hit about 9:50. A fifteen point rally in about an hour and a half was enough for me, but if you wanted to stay in, after they rallied back through R-2 resistance around 1:20 PM, they pushed to final resistance/profit target shortly before the close.
A monster rally today
If you have any questions about Trade or fade, visit the web site here or contact me.
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