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.

“Good morning, everybody. Happy Tuesday, June 4th! Today’s quote: ‘There is profit in hard work, but mere talk leads to poverty.’ Do you just talk about being a good trader, or do you put in the hard work? Are you up early doing a thorough, complete pre-flight checklist? Are you doing your end-of-day charts on the weekends? Are you replaying the days? Are you putting in the hard work, or are you just talk? Michelangelo has a great quote too: ‘If people knew how hard I worked to get my mastery, it wouldn’t seem so wonderful at all.’ So work so hard that no one would be impressed because they’d see how hard you work and go, ‘Oh my gosh, I don’t want that.’ Well, that’s what it takes—hard work. Alright, that is just true, true, true. Let’s get into it.

So, AM briefing number 191, brought to you by MicroTrader.com, where together, we trade better. These AM briefings are designed to prepare ES and INQ traders for our trading room. So let’s get into it, guys. The first thing is the tip of the week: When have things changed on the trading floor? Last night, I posted a video where I walked through, candle by candle, showing how that worked out. Today, I’m going to give a brief explanation of it, but for a detailed explanation for members, check out that video on the trading floor.

So, what are the news drivers today? Well, today’s Tuesday, June 4th. We have the JOLTS job report 30 minutes after the opening. So, 30 minutes after the opening, maybe we can get a trade in before then, maybe a trade after then, so we’ll see. Now, leading into non-farm payroll, today is kind of the last good trading day. Wednesday can be weird, Thursday can be just horrible, and Friday can be horrible, so if you’re looking for a nice 4-day weekend, this is the week.

Yesterday was a carbon copy of Friday, and this is why I said you need to know how to know when things have changed, and basically, it’s drawing a trend line, and it’s breaking. You draw a trend line, and it’s breaking. You don’t go long on these moves. You don’t go long on these moves. You don’t go short on this move. You don’t go short on this move. And you have to be able to recognize the change. Now, when you’re in our group, we’re all trying to help each other because today, together, we trade better.

In fact, I put in the group yesterday that when it broke this trend line, it broke it with a vengeance. Notice how this one broke it with a vengeance. So, watch what’s happening, not what you want to happen. Follow price, don’t predict price.

So, just some reminders before we get on the chart: Today is Tuesday, so free live stream as soon as I can get my wife out the door. Going to her curriculum writing for the school district, I will go live on YouTube. In fact, I will put the link in the first comment below this AM briefing. Sunday, I plan on doing a chart tune-up for NQ and ES, and make sure every day you are doing a thorough pre-flight before you even think about trading.

So, guys, if you like what I do, like and subscribe, and think and entertain the idea of becoming a member. So let’s get to the chart. So I’m on a 4-hour timeframe here, and it’s pretty obvious that we have this trend line. It had two or three points, push that out. Now, at one point, this was parabolic, okay, and then it had to be adapted, and now it’s been adapted again, okay? So it’s been adapted twice. What else can we put on this chart? What else can we throw this on there? Now, I like having three points of contact; two kind of starts the line to me, three confirms it. So this is where we’re at at this moment. So yeah, let me put that in my trend line folder because I just added that trend line.

Alright, so let’s go now to a 10-minute chart. Let’s pull this thing in, and uh, boy, look at that, they’re converging on each other. Where did price bounce? Did it just bounce at some random spot on the chart? No, none of this is random. How it might get there is random, but once it gets there and it bounces, it’s not random. Would that happen to be, look at that, right there at the top of our range that we have on our chart? Price loves to say, ‘Oh, we’re breaking out, breaking out… no, we’re not,’ and then it breaks it with a vengeance. ‘Up, we’re coming to the range, no we’re not, boom!’ Catch chasers off sides—that is what the market loves to do; it’s trap the trader, trap the trader.

And where did we stop up there? Would you just look at that, right at the edge of this range? We are really good at what we do, and it is no surprise. Now, one thing I didn’t like about this move here, look at this, it was like, I’m on a 10-minute chart, this was like 1, 2, 3, 4, 5, 6, 7, even 8, a long time that it’s just hanging out here before it gets on its move. Interesting, because one of the things I watch in the pre-flight—I mean not in the pre-flight, in the pre-market—how well are the lines balancing, and are they touch and go, or is it come to the line, hang out, hang out, hang out, and then go? So it’s one of the things I watch in the pre-market action.

Let’s remove these two things now, let’s bring on some strong levels here. So yesterday, when I was going long, I went long based off my strong range here, and knowing the character of ES, of how it likes to trap traders, it was coming into that range and then skyrocketed out of it. So I took a little heat during this time, but then amply rewarded. So, be careful with longs below. So in my opinion, yesterday softened this area, softened this area. So if this thing decides to come back in, I would not be shocked if we explored all the way down here to this 5180 area. Wouldn’t be surprised. Now, they might save that for non-farm payroll; that might not be something that happens today. I still think this is our bull-bear line up here at 5309. If we can pop this trend line and get back inside of that next range, what’s it going to do? It’s probably going to go to the top of the range. So let’s take a peek at that, let’s turn that off, let’s turn this off.

So if it gains, so if it comes back into this range, 5350 seems like a likely target. Will it do it 3 days before non-farm payroll? I have no clue, but that’s what I would be looking for. We monitor for continuation, we monitor for continuation, and what is the best sign of continuation? Members, backside development. Backside development, that is the best sign.

Let’s go look at our fellow indices now. Where is everybody in relation to yesterday? Well, look at this, Russell went under for a little bit, and everyone else is just right here at halfback, right at VWAP, right in the middle of the range. Are we all on the same train? Yeah, we’re on the train to boredom, that’s the train we’re on right now. And, um, as we get closer to non-farm payroll, just realize your risk is going to increase, so therefore, your number of contracts should decrease. Um, trading, um, evaluation, even demo, whatever it takes for you to dial it down, know that I can enter with one contract, and I can build a position in the profit. Don’t build a position when you’re negative; that is not the time to build a position unless you’re long-term investing like Warren Buffett. We’re scalping; I don’t believe we should be dollar cost averaging into losing positions. If you do it, do it one time and one time only.

Alright, guys, so that’s it for the AM briefing, and like I said, I will be live here in not maybe an hour, as soon as I can get the wife out the door. I will see you later. Good luck trading. Stay green, my friends, and to learn more about our group, go to MicroTrader.com.”