Fri ES MES Technical Analysis, Tips, Key Levels & Trading System 12/20/2024
Preparing ES Emini and MES Micros Traders To Trade In Our S&P Trading Room
Welcome ES MES Futures Traders
Good Morning, Everyone!
Happy Opex Friday! Today is also the “two-day FOMC hangover” day. Let’s start with some inspiration for traders:
“But those who hope in the Lord will renew their strength. They will soar on wings like eagles; they will run and not grow weary, they will walk and not be faint.”
Isaiah 40:31
This verse inspires and motivates, reminding us to stay steadfast in our pursuits.
AM Briefing #328
Welcome to the AM Briefing #328, brought to you by MicrosTrader.com, where we come together to trade smarter. Let’s dive into today’s insights and strategies.
Tip of the Day: Opex is No Joke
Today’s trading is classified as a Level 10 Day, emphasizing caution. If you’re using my Trade Journal Template, mark this as a “special day.” Journaling can provide valuable insights for your trading journey, and I’ll soon release an exclusive video covering advanced journaling strategies. Members can access the Trade Journal Template to use with a free Airtable account.
News Drivers for Today and Next Week
Today’s Key Drivers:
PCE data and University of Michigan Consumer Sentiment.
It’s the last day for trading the Z contract. Extreme caution is advised.
Historically, December tends to be more challenging for trading, so plan accordingly.
Next Week:
Christmas falls midweek, making Monday and Tuesday potential trading days, with the rest of the week likely quiet.
Consumer Confidence data will kick off the week.
Strong Levels: Defining Key Ranges
What are Strong Levels?
Strong levels are predefined price zones that I believe price will interact with. These levels are shared through an indicator that members can toggle on and off, eliminating manual plotting.
Weekly Setup Process:
Strong levels and ranges are set every weekend for the following week.
Notes like “bull/bear lines,” “watch out below,” and “likely targets” are added for key trading areas.
This week’s likely target has been reached, showcasing the precision of these levels.
ES Chart: Where Are We Now?
We’re at an important trading location:
Current Status:
Price has hit the likely target and back-tested a major trendline.
Overnight lows have been taken out, and we are at the election gap zone from November 5th.
Scenarios:
If price holds, we could see a rebound northward.
A strong reaction off the likely target could spark a Santa Claus rally.
Essentials Indicator Update
New Feature: Huge Candle Alerts
A 20-point candle now triggers a red alert, highlighting extreme volatility.
This feature helps identify environments of irrational price action, making it easier to adjust strategies accordingly.
Overnight Price Action & Current Indices Status
Overnight action displayed significant volatility with eight-point candles in the London session.
The VWAP analysis shows Bears firmly in control across indices.
Long positions should be taken with extreme caution, if at all.
Bull-Bear Scorecard
Bears Control: Trendlines, session stacking, VWAP, and overnight halfback are all Bearish.
Key Observation: While Bears dominate, price remains near significant levels where a reversal is possible.
Closing Thoughts
We are at a pivotal range near the bottom of long-term regression channels, a location where price could rebound. While a breakout is rare, returning to the range is more common. Stay alert and trade smart.
Stay green, my friends! To learn more about our community, visit MicrosTrader.com.
Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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Risks Associated With Trading
IMPORTANT DISCLAIMER
By continuing with the Core Strategy Academy, Discord, and Zoom you also acknowledge and accept the following information:
The material in this course is general in nature. It does not constitute personal investment advice or personal trading advice. Any advice provided is general advice only and does not take into account an individual's risk profile or financial situation.
The author of this course content is not legally qualified to give personal investment or trading advice.
Although the author is an experienced and consistently profitable trader and the information offered within this course is given with the best intentions and made to be as accurate as possible, the author has no idea what your financial situation is and everyone has a different tolerance for risk and different investment goals.
The purpose of this course is to teach you how use technical analysis to assist in your trading, it is not intended to teach you how to trade even though many lessons do share practical techniques based on real-life trading experience.
The lessons in this course are provided as hypothetical trading examples, not necessarily ones that are profitable or robust. While the creator of these lessons has used some of these techniques to generate profits in the past, it is not guaranteed that you will experience the same results and past performance is not indicative of future performance.
Trading involves the risk of loss as well as the potential of profit. It is generally advised by successful traders to never risk more money than you can afford and are willing to lose - both on a trade-by-trade basis, and a portfolio basis.
You should seek independent financial advice from a qualified professional in deciding if trading is appropriate for you. Please also consider the appropriateness of that professional advice in light of your own objectives, financial situation or needs.
ALL MATERIAL HAS BEEN PREPARED BASED ON INFORMATION BELIEVED TO BE ACCURATE AT THE TIME OF PUBLICATION. SUBSEQUENT CHANGES IN CIRCUMSTANCES AND THE MARKET MAY OCCUR AT ANY TIME AND MAY IMPACT THE ACCURACY OF THIS INFORMATION.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE PERFORMANCE.
Information containing hypothetical or simulated results has limitations and may not represent actual trading. Since the trades presented in simulated backtests have not actually been executed in the market, the results may under or over-compensate for the impact (if any) of certain market factors, such as lack of liquidity, large spreads, slippage, commission costs etc.
NO REPRESENTATION IS MADE THAT ANY TRADING STRATEGY WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN HYPOTHETICAL BACKTESTING RESULTS.
You should carefully consider your objectives, financial situation, needs, psychological and emotional fortitude, and any other relevant personal circumstances when determining whether or not trading is suitable for you. Trading is not for everyone, and for some there are much easier ways to make money from a side-hustle or career more suited to their personality and situation.
Trading is exceptionally difficult to succeed at, with a remarkably high failure rate. So please do your own due diligence to protect yourself and your capital from unnecessary losses and damage. Seek advice from a qualified professional (such as a financial advisor) if you feel uncertain about your decision to begin trading.
THE RISK OF LOSS IN TRADING SECURITIES IS LIMITED TO THE AMOUNT INVESTED. HOWEVER, THE RISK OF LOSS IN TRADING DERIVATIVES (SUCH AS FUTURES, CFDS, FOREX ETC) MAY NOT BE LIMITED. THIS MEANS YOU MAY LOSE MORE THAN YOUR ACCOUNT BALANCE OR THE AMOUNT REQUIRED TO HOLD AND CONTROL THE PARTICULAR DERIVATIVE, ESPECIALLY WHEN EMPLOYING LEVERAGE.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINED IN FUTURES, OPTIONS, FOREX AND CONTRACTS FOR DIFFERENCE CAN WORK AGAINST YOU AS WELL AS FOR YOU. IN OTHER WORDS, THE USE OF LEVERAGE IS A TOOL THAT CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS. WHEN USED PROPERLY THIS CAN BE AN ADVANTAGE, BUT WHEN USED IMPROPERLY AND CARELESSLY IT CAN RESULT IN CATASTROPHIC LOSSES - OFTEN RAPIDLY.
This brief statement cannot disclose all the risks and other significant aspects of securities and derivatives markets. It also does not cover the many risks inherent in cryptocurrency trading - such as lack of regulation, potential liquidity issues, high volatility and various third-party risks. It is YOUR responsibility to research and decide whether or not to accept the risks involved in the particular market or asset you choose to trade or invest in.
IT IS YOUR RESPONSIBILITY TO CONSULT YOUR FINANCIAL ADVISOR TO DETERMINE WHETHER TRADING IN SECURITIES, CRYPTOCURRENCIES OR DERIVITIVES PRODUCTS IS APPROPRIATE FOR YOU IN LIGHT OF YOUR OWN FINANCIAL CIRCUMSTANCES.
Good luck with your wealth creation journey, and please take this information seriously. The graveyard of failed traders is large and ever-growing, and that is largely due to these warnings being ignored and the many dangers of trading not being respected.
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