Very Nice Futures Trades This Friday! So What About Monday?

Awesome Futures Trades In The Live Trading Room

As we take a look, Friday was absolutely awesome. Ryan and I were firing off those futures trades and despite the fact that we had several trades, there were a couple that I liked the most because they are core concepts that we teach here all the time. That was these two here. Early in the morning, of course, you can see that we walked in the door below the daily speed lines, so of course my first bias was to short and then between the indicators and the market energy and the consumer confidence numbers, it was a double sell signal right over here momentum shift with trend and accumulation break down. So that gave a double sell signal right over here that was awesome. Then, my favorite futures trade out of Ryan today was the poke trade and a max range extension. So, what we had was a max range extension trade back into the down trending resistance at the same time, this is also called a poke trade. This is a double sell signal and we are looking to take that trade right at the close of the bar. Then it rolled righted back over and Ryan did a fantastic job with that as people got to see. He grossed about $350 let alone the trades that I did. Bottom line, is some great trading here between all of the different futures trades that were done in the Live Trading room. Awesome stuff.  As we go into next week, let’s take a look at a couple of different things.

The Euro And Crude Oil

As far as the Euro is concerned, right now I want to get down below the 1.35 level. We’ve moved into the September contract at this point, but I want to show the continuous contract tonight because it has all of my key support and resistance levels and right now, as you know, particularly the 1.3480 level is an area I want to beat due to the fact that it breaks my 80/20 rule and also this key accumulation bar in the backdrop. So, I’d like to get down below the 1.3480 going into next week. Additionally, Crude Oil went ahead and had another nice day. It had a range of about 100 ticks to the upside off of its lows. So it had a nice continuation follow through early on. Going into Monday we are going to see if it can continue to hold the speed lines and bounce and continue to look for fresh long side opportunities. If it breaks down below the speed lines, we are going to back off and see if it gets a firm footing because one day does not make a trend on this key breakout. So, since we had one nice solid bar and the next bar is a doji star, that’s a period of indecision, most people don’t realize that is effectively a 50/50 trade at this point so we are going to need to see some more information going into Monday before we do any futures trades.

Looking At The Stock Index Futures For Monday

As it relates to the Stock Index Futures as a whole, walking in the door Monday, we are set right now to open below the speed lines so as you can imagine, my first bias is going to be looking for continuation shorts until such time as we break above. Now these speed lines are all coming down pretty quickly so it won’t take much actually for the NASDAQ or the Russell to break back above those speed lines.  The S&P, it’s going to be a little bit tougher there, it’s going to have a little more work to do and certainly the DOW is going to have some serious work to do to get back above those speed lines. So I am going to be cautious on any long side futures trades until we gate back above there just based on where we are at. This is kind of a kill zone as we refer to it where you have the rising support underneath, the resistance crashing down and that is where a lot of whipsaws tend to happen, so we’ll be a little bit careful walking in the door from a long side perspective in particular. But, if we get some nice sell signals going off again, just like the last couple of mornings, Ryan and I have been killing it with those short side futures trades and we want to continue to focus on that as well if history repeats itself going into Monday.

So, those are a couple of the key things we are looking at. I hope you have a fantastic weekend. We will look forward to seeing you guys Monday. Let’s do it all over again in the Live Trading Room and in Monday night’s videos. Take care everyone, have a great weekend!