Preparing ES Emini and MES Micros Traders
To Trade In Our S&P Trading Room

Transcript

Price Action Bounce Trading System. How To Scalp ES Emini or MES Micros Futures.

Helping Futures Traders Via Our Core Strategy Academy Training Program and Futures Trading Group – The Best Emini Group IMHO.

Welcome to the AM briefing video presented by MicrTrader.com, where together we trade better. Good morning, traders! Welcome to PX Radio, the Futures Edition. All right, so today’s quote is, “Be sober-minded; be watchful. Your adversary, the devil, prowls around like a roaring lion, seeking someone to devour. Resist him, firm in your faith.” You know, some days, when you’re fighting the trend, it feels like the lion is hunting you. You have to resist him. The devil is always looking to get you. He knows your weaknesses and where you fall vulnerable to the temptations in your trading day. Recognize those temptations and resist him because he is walking around like a roaring lion, hoping you’re weak, tired, frustrated, and bored, so he can devour you. Be mindful and watchful. Let’s get into it.

So, welcome to the AM briefing brought to you by MicrTrader.com, number 180, where together we trade better. All right, right, oops, pressed the wrong button. So, the first thing is Level 10. Level 10 yesterday, Level 10 today. Monster move up to all-time highs, ES during the RTH, NQ in the overnight, and we are just sitting right up here at the previous all-time high. We’re just sitting here. You can expect monster chop, and at any moment, you can expect this thing to flush hard, but do we predict that? Heck no. We trade the levels as they develop.

You want the number one way to not get in trouble with our system anyway? You trade the clean, clear, crisp levels as they’re presented to you. I don’t care if they’re short or long. Now, if you’re trending and you’re never taking out break levels to the south, the play is obviously long or flat. But if you have a clean, clear, crisp level in our group according to our core strategy, you can take it. Level 10 continues today. Level 10 continues.

So, where are we? Well, we’re at all-time highs. We’re sitting here at all-time highs. What do you do? We had two or three more sets of single prints, and we’ll talk about that in a second. So, make sure that you had all those set session highs and lows marked on your chart because they became all-important yesterday. They became all-important. So, make sure you have that marked. Know where today’s high was, halfback, the low. Have all those sessions marked clearly on your chart.

Tomorrow is OPEX Friday. Tomorrow is a great day to take off. If you had a horrible day yesterday, maybe you go ahead and take today off and tomorrow off. Take a four-day weekend, come back Monday with a fresh mind and spirit for trading. Dig into the charts and do your end-of-the-day charts for the whole week. Do candle-by-candle replay.

Okay, so we just got done with a trifecta day. This is hangover day. This is hangover day, so expect hangover-type of action. And what is my key level? Well, when I show you the updated strong levels, we will talk about that.

So, what’s my tip? Well, the first one I’m going to say is: Where is price headed? Am I with that direction, or am I looking to trade against it? Should I even be trading? Am I biased? Am I following price, or am I fighting price? And I’ll tell you, it’s hard to resist, but you never need to be the first one to short. You never need to be the first one to short.

So, I kind of gave homework last night to my traders. Of course, I can’t make anyone do anything, but something I wanted them to contemplate: When can you short an uptrend? So, yesterday we had this straight-up uptrend. Well, I just drew behind the yellow box, you can’t see it, but it went straight up yesterday, right? Let’s reveal that. So, here’s the straight up, okay, leading up, leading, leading up. When can you short that? That was the homework. When can you short that? Well, I’m just going to throw out some stuff here for you, some things to think about. What resonates with you? You go to Baskin-Robbins, we’re all getting different flavors, so here’s some flavors for you.

First of all, in an uptrend, something has to break. You hear me say that all the time, something has to break. So, it’s so easy to say these things on YouTube, but I promise you, I went long right here. Anyone in my group would tell you I went long here. Price did not behave in the manner to keep me in the trade, and I’m like, great, and then this thing runs. And you know what I do? I remove myself from the chart. Why? It ran without me. I had an amazing entry. I am now frustrated, and you kind of want to say, screw you, price, and you start shorting this thing. Okay, and then you start refusing to take the gifts of break even, you refuse to take the small wins because when you go counter, you have to know it. See money, take money. If I counter, it’s small. It’s see money, take money. Do not make things worse. I will not add to my losing trade. I will not move my stop loss. You take two losses in a row, you should probably be done trading. You want a good rule? There’s your one. You take two losses in a row, maybe I should be done trading.

So, we’ve got an uptrend here. Something has to break. I recommend two break levels breaking because that’s when I consider the trend goes from trend up to balance, and then another break level or two, and we’re now trending down. Okay, so something has to break. Sure, it could be a broken trend line with an aggressive shift in market structure, leaving a beautiful fair value gap, which brings me to my second piece of advice here. Perhaps you only short a backside in a fair value gap.

So, right now, if you look here at the overnight set, look up there at the Asia session going into London, there’s a beautiful backside in a fair value gap. You would be allowed to short backside in a fair value gap. It also took out one break level, but it also broke a trend line. Then you got a backside in a fair value gap short. I’m okay with that. What if you only took the second short setup? So, you saw the first short setup, you’re like, okay, all right, I like it. We took out a break level. We got a shift in market structure. We took out the trend line. I’m not going to take the first short, or if you do, I’m just going to do it with one tiny contract with the goal to add on the second setup. What if you only did that? What if you only shorted when price is under the VWAP?

So, let’s, and I’m going to give one more, then let’s go look at this. Short under VWAP. What if you only waited for a session high or low and you did it small? So, when I went short, I went short right here yesterday. Here, let me remove this. I published a video on that. I shorted here. Luckily, I went long here, but I did not get to participate, nor will I pretend I did, but I did nicely here. I recorded that. I published it last night. What was that short right there? Well, that level should have been on your chart. It was a session high or low, and let me tell you, session highs and lows are more powerful than four-hour, one-hour, 30-minute, and down levels. That’s why I do have the 30-minute levels and higher on my chart, but if right above that I have a session high, that’s more attractive.

So, let’s map that out. So, let’s say you had three high time frame levels here, okay, but right above it, we had a session high. Which one’s more powerful? Which one is the bigger magnet? And that’s why I was telling you guys that in this area here yesterday, I said we are not done going up. We’re not done. I don’t care if there’s other high time frame levels here. You could try them, you can make money at them, obviously, and right in here you can see all the blue candles, it obviously bounced. There’s money to be made, okay? But also be cognizant of where are the session highs and lows because those are the bigger magnets.

So, let’s do this. I’m going to turn on our essentials indicator. This entire move was above the VWAP, right? So, if you’re going to use that VWAP rule of, I only short under VWAP, none of that qualified. No problem. The play is long or flat. That puts you on sides. It reduces your stress. It reduces your frustration. We’re all trying to predict, oh, it’s going to vomit back down. We gapped up, we went straight up, we’re going to, uh, maybe not. Trend is your friend. Are you following the trend, or are you fighting the trend?

So, let’s go back in time here a little bit. Let’s go back. Okay, look at this vomit candle down. I’m not saying the VWAP, but here we’re clearly under VWAP. Now you’re clearly under VWAP, so under VWAP presents opportunities to perhaps go short. Here you’re above the VWAP, opportunities to be looking for longs. Look at this. Yeah, you didn’t get this first monster move down. You didn’t get that. But hey, now we’re under here. Am I getting a setup to go short? Look at all these. They above the VWAP, perhaps we’re only looking for longs. And the only reason I’m suggesting this is because maybe it’ll help keep you on sides to help you from prediction trading. You want a black and white rule? Well, the black and white rule would be, where am I in relation to the VWAP? Where am I in relation to VWAP? Here it is, we’re all above it. All this is longs, all this is longs.

This is where it gets a little confusing. Boy, look at all those eighto candles. I wonder what that day was, Friday. I wonder if that was, I don’t know what that was, but whoa, whoa, that looks like a different type of day. So, go back and look at that. If I’m under VWAP, I am now activated to look for shorts. Or like one of the other rules I said, you only short when there’s a backside in a fair value gap. That’s my short. That’s when I can start looking for shorts. When price develops a backside in a fair value gap, it’s honestly a black and white rule. Is there a backside with a fair value gap that I could short? Once that has been established, I either take it small, or I now can look for the next setup. That’s also core strategy. Clean, clear, crisp. I know I spent a lot of time on this, but I believe that it is needed and helpful. Needed and helpful. So, I hope you appreciate the additional time on that.

All right, so let’s continue. So yeah, like and subscribe if you like what I’m doing, and may price always bounce in your direction. I love that.

All right, so news drivers. Well, this morning’s unemployment claims and there’s nothing tomorrow. We are in CPI hangover mode. Let’s go take a peek at the website. Now, on the website, I have here Summer Intensive. I’m going to be releasing, um, I think I’m going to do a June Summer Intensive and a July Summer Intensive. And if you’re new, this is, you want a deep dive? You want to take your summer and really deep dive? Or you’re a member of mine, and you really want to deep dive again and just really hone in? Well, Monday is going to be an education workshop. That is going to begin at 11:00 Eastern in the morning. And then Tuesday and Wednesday, what we’re going to do on Tuesday, we’re going to go candle by candle on Monday and map out all the trades and trade them. And then on Wednesday, we’re going to map Tuesday’s trades. Okay, so it’s Monday, Tuesday, Wednesday for all of June, and then Monday, Tuesday, Wednesday for all of July. So, if you’re brand new, I’ll have a little bit of different homework for you because I want you to get ahead. So, if you’re interested in the Summer Intensive, details will be coming soon. I’ve got to work on that.

So, let’s hit the price map, because one of the things definitely updated on the price map are the single prints and VPO. So, I updated that last night. You can click the image; it will enlarge. It will tell you the prices to put them on your chart. And here’s today’s news drivers. We have unemployment claims, then nothing really tomorrow. You’ve got a Fed speaker, orange folder event, so I guess there is something tomorrow, but not an awful lot, but it is something.

All right, let’s go back to the AM briefing. So, what’s happened overnight? We made a new all-time high. We are seemingly laying down. It’s going to be hard, though. This is going to be hard. When isn’t it obvious when price starts vomiting? Like, isn’t it obvious? So, right now, you still have to lean to complex chop. I can’t say lean long. Longs are risky here. Shorts are extremely risky here. So, we’re going to pay attention to break levels, we’re going to pay attention to the trend lines, and we’re going to pay attention to clean, clear, crisp levels, knowing we are on the CPI hangover.

All right, let’s go look at all the indices. So, let me slide this over. Where are we? Well, Russell is inside of yesterday’s range. I’m almost went to the halfback. Dow is starting to dip its toe into yesterday’s range. NQ is going, no sir, I’m having none of that. I’m above my previous all-time high, and ES is flirting here. Are we all on the same train? No, we’re not, not yet. Realize this is hangover Thursday. Thursdays do tend to be trend days, but after yesterday, I’m not 100% sure about that.

So, what’s the game plan today? The game plan today is to recognize we’ve made all-time highs in the overnight session, which is not a secure location. This previous all-time high was also done in the Asia session, and now the Asia session made another new high. Multiple days, two weeks of basically up, chopping up. ES going to take a rest? I don’t know. Are we going to predict that we’re going to flush? No.

Let me bring on strong levels. So, if you’re in my group, your strong level indicator was updated this morning. And I’m going to, where are my, hold on. Yeah, 5/16, where are, hold on, where’s my warning labels? Well, I got to go back and look at that. So, this line right here at about 09.75 should say bull-bear line, and then this line right here at 03.25 says careful with longs below, careful with longs below. Okay, then I updated a couple more lines down below, and who knows if we’ll get there. We may never see it again. We might go to 5500 and never see 5300s again. What do I know? And it is real easy for your macro view to bias you. We’re just going to trade the levels. At the end of the day, it’s front sides, backsides, break levels, and trend, right? Sessions high, session lows, halfbacks, pox.

But overall, if you were all confused and I had to reboot you, had to control-alt-delete you as a trader, front sides, backsides, break levels, trend. That’s where we’re at. Everything else is just additional confluences, additional trades that might present themselves, but front side, back sides, break levels, trend, clean, clear, crisp, two-candle clearance. This is really important stuff.

Now, as I said earlier, the homework about when do I short an uptrend also applies to when do I go long on a downtrend. We start downtrending, when do you decide to go long? It’s the same rules, it’s just inverted. That’s all, it’s inverted. But we also know that when we do have strong down moves, and I start screaming, risk of short covering is high, risk of short covering is high, that we need to pay attention to that. We haven’t had that in a while, but it’s just the opposite.

Sorry for the long-winded AM briefing, but thank you for being here with me. It really means a lot to me. And if you enjoy what I’m doing, make sure that you like and subscribe, and I will see my traders later. So, I wish you good luck today. Please stay safe, please stay safe, please stay safe. Stay green, my friends. And to learn more about our group, go to microstrader.com.