ES 5-13-13

Some nice zones of Confluence today

Monthly r2, weekly R1 and daily R2 1636 - 1538.50

Last weeks high and daily R1 1632.50 - 1633.50

VA lows and daily S1 and weekly Pivot 1622.50 - 1624..LVN is here too

Big bulk of collected Volume ( hvn)and daily pivot at 1626.50 - 1627

If they can push out beyond that evil low at the 1620 then I will wait until they push under the 1618 number into the 1616.75 - 1617.25 zone to hunt longs..volume and VA's are there and daily S2

Monthly R1 and weekly S1 falls in the 1614.25 - 1615.50 area..It is probably better to create a zone between 1614.25 and 1617.25 !!

best sells will come up near 29 - 30 again and buys under the 24 area..we are still balanced but that will change soon

There is a LVN at 27.50 but it is too close to the 26 volume for me to use wisely. Best to use that 26 - 27 area as a magnet still. The trade would have to set up almost perfect for me to short the 26 - 27 if we open below...If we open above that and drop down to it then it will be ok to try longs because of the uptrend but I will still keep them smaller due to all that magnetic volume there. I'm expecting a test of last weeks highs

some added babble as it may be clearer -

When we open in a weekly range then we have a high probability of returning to that weeks closing price. Compliments from Paul.So with the continued uptrend we are still safer to take longs
No video below? Try this link: monday_5-13.swf

only one GOOD opportunity so far and that is the long off the first key zone ..the 22.50 - 24 ..back up into 26 and hopefully higher for gap fill if we are lucky today
any runners need to stay above that 26 now in order to get that gap close......tricky hold near the VA highs of Friday....and that bulk of volume..
today we get lucky !!! don't get too greedy as us buyers will start to cover near that gap close and that 30 this may be a sell area to some
so we are still balanced --expecting the market to get very far outside the other side of the balance area after trading on the opposite side is not smart trading...naturally the balance area has to break sometime but why assume it will happen while YOU are in the trade..

best to be satisifed with a good trade and if you are lucky to trade with more contracts AND can hold then it is ok to try for the big score...otherwise just exit and wait for volume to show you that we might be breaking out of balance and climb on with the FIRST low volume retracement in the direction of the breakout
Wow... I'be been following you since early this morning... You've covered a lot of ground this morning. Thanks Bruce!
Cool Tradequeen....first we come up with the areas and the context...then we need to decide which trades fit our style and risk tolerance...then we need to just take the trades...

I try to take good ones in the first 90 minutes .....then my trading probabilities drop off and I don't trade as I trade much lighter from 11 a.m on. This makes good sense to me as this is when they like to test so many ranges and areas...( the first 90 minutes) ..they try to suck in breakout traders..when the breakout traders win then we lose...usually..!! Luckily that isn't too often

just look at VA lows and or highs...or overnight lows and or highs or the previous days low and or high..... a test of one of fridays ranges is all that is really left to be tested but since we are balanced it would be much harder to trade for one of those range extremes need the VA high and that 26 area to hold in order to get that one !!! Otherwise it doesn't pay to be long if those break down
For those of you who are not logged in or don't have the 50 reputation points it takes to be able to vote on the value of a post you can also show BruceM some love by clicking the Google G+1 or Facebook Like buttons at the top of the page.

Thanks Bruce for all this valuable info - appreciated!
Awesome DT... I don't know much about google+. I seen an article on it yesterday and was just wondering about it not more than 15 minutes ago... Your timing is freakin perfect... I'll look into it after market close today. Thanks for the heads up!
30.50 is todays developing LVN and a target on shorts up here...buyers will try to defend around there so don't be exact on an exit
volume has tailed off since the 11:55 bar ( 5 minute ) and we have multiple players at this zone...The R1 and last weeks high players...lets see them work some magic together

since this is counter trend and a bad time of day it always makes sense to trade lighter on fades..also twice the Ib sits up at 34.75 so it always possible to go there to shake us a bit
if you are a pig you'd want this to stay UNDER the LVN at 30.50....that is also last weeks VA high based on RTH data and 30 minute time bars and Volume VA's...

last weeks close is there too...hope it goes whichever way YOU need it to