I had half day training today.. but still got back to the office before the afternoon session opened.. However, I did not make any trades today..
Here is the price action for today.
This is the FKLI Daily Chart. What do you guys think? We did trade at a higher level from yesterday.. but is the danger over now? US futures seems to be pointing back up as bullish news from AAPL's (Apple) is leading the market up, but we are still basically still trading inside of the flag pattern as for now.
The FKLI traded to these following level today:
Opened 1578.50 from 1576.50
High: 1578.50
Low: 1571.50
Closed: 1576.50
With the FOMC meeting tonight, we expected today to trade in a small range.
Morning, price opened at the high and traded down to 72.50 and then bounced back to the 75-76 right through lunch.
After I came back to the office in the afternoon, I noticed the 3 bars in the half hourly chart that traded in 1 point range of 75-76. I was wondering that, if I had been watching the price action since morning, would I have placed a buy stop above at 77 and a sell stop at 74 there?
Maybe, maybe not. In any case, because I missed most of the price action in the morning and feel a bit not in line with the market coming in mid way, I decided to sit on hands for the day.
We broke out from the 75-76 range right after lunch to test a low of 71.50. Then one of my trader Teo parked a buy order at 70.50 expecting today to be a choppy day and a break out unlikely. The strategy is a good one and his analysis was good as well. Although price never reached his entry price, it did eventually rallied to 77.50 before closing at 76.50
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What to expect for tomorrow:
This is the Cash Index chart.
Tomorrow we will have Unemployment Claims and Pending Home Sales report, both big numbers. Expect price action to be choppy and range bound. See the minor trendline over the past 5 day's price action? We have yet to cross, and close above it conclusively. If the US market do close up a lot tonight, then we might break that tomorrow to go back to test the 20ema.
And if yes, then we will have to make a decision if this is just a bounce from the recent breakdown or would price recover fully and resume the up trend again.
I am in favor for a bounce back to the 20ema, before continuing the down move again. So I will be looking if there is opportunity to swing a short move using May's contract.
So we will see how the US market perform tonight and I'll post the trading levels tomorrow morning.
Have a great rest and see you all tomorrow.
Ciao!
Best Wishes,
Tech Trader
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