Preparing ES Emini and MES Micros Traders
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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 MicrosTrader.com, where together we trade better. Good morning, traders! Happy Tuesday, April 2nd. It looks like the market has inverted. Yesterday, we were up here doing nothing, and this morning we are down here doing nothing—more mind-numbing chop. One thing about it: this is not going to continue. When it first touched this strong range, to right now, almost 20 hours of chop, the only thing we know is it’s not going to stay here, and we very well could be waiting for the JOLTS Job report to give the market an excuse to go crazy. We’ve got a number of FOMC speakers today and tomorrow; Powell is actually speaking.

Yesterday, our core strategy had five winners and one loser. Now, the thing that’s interesting about that loser is two things. Number one, it was counter to a parabolic move, and you know what I say: do not counter when you’re in a parabolic move. We were in a parabolic move; we had this trend line from the overnight and then parabolic. When you go parabolic, you are not looking for longs, in my humble opinion. So, this loser was counter. The second thing that’s interesting is this was a trade after you were already in a short that did really fantastic, so in all honesty, you should have never had that loser because you should have already been short, and two, you were in a parabolic move. In fact, I need to note that new metrics I’m doing this year was a loser not only counter but was the loser in a parabolic move. Because when we do our end-of-day charts, we are judging the level just based off the level; we are not worried about trend, we’re not worried about liquidity grabs, we just want the level to hold its own no matter what. And as you saw in the yearly results, the levels do, but in this case, I’m going to denote that that was not only counter but in a parabolic move. Great idea!

Okay, so trend lines for right now, well, there isn’t any. What takes out trend lines? Price or time, and time has taken out this. Now, one could say, “Well, I’m going to just turn this out here and adopt this out and just as a good reminder to myself, hey, we are in a down move,” but to be honest, I think after 20 hours, it kind of resets itself and goes, “No, we’re just in pure chop.” That’s where we are; we’re in pure chop. There are now new market characteristics, in my humble opinion, than a down move when you’ve spent 20 hours straight sideways, in my humble opinion. What do I know?

So, the news drivers today: we covered JOLTS Job report 30 minutes after the opening, and tomorrow’s Powell, and Friday is Non-Farm Payroll. Overnight: pure extreme chop and boredom. London took out Asia’s low and high, grabbing all of that liquidity from the Asia session. The RTH low is still here. I believe this halfback is going to be a very important level. Yesterday, the RTH high is also the IB high. This is the RTH high right here; this was done in the RTH, and this is the all-time high done in the overnight. In fact, what I’m going to do is I’m going to denote that was done in the overnight because who knows, we may not see that for another year. We could keep going down. What do I know? So I want my notes to be complete.

You also want to have on your chart and noted this London overnight high is untouched. I’m sure I have it; I’m just going to go ahead and mark it just for completeness. London overnight high. Well, the Asia overnight high is the all-time high, and in fact, if you wanted to, you but this was done in the Asia session for completeness of your notes.

Strong levels: well, I don’t have anything. I’m going to update you with this strong range has obviously been something important. This Monday halfback is going to be a strong level, and it’s almost kind of the bull-bear line, in my humble opinion. So we get above that, watch out above, perhaps, and if we can get under the RTH low, we’re going to come against this daily trend line, and we’re going to come to this bull-bear zone where I have the additional note: will we drop to 44? Just underneath that, we have an RTH low, and we have a maintenance period overnight low. The maintenance period is before Asia begins and settles. There’s a settlement.

Okay, let’s take a peek at everybody else. So this is the halfback yesterday for everybody else. You can see Russell and Dow are under yesterday’s range. ES is just now breaching it, and NQ is almost there at it. The reason we look at this is: are we all on the same train? Almost.

I think that’s all I want to say. I’ll see my traders on Zoom about 1 hour before the market opens. Stay green, my friends! And to learn more about our group, go to MicrosTrader.com.

Transcript
All right, good afternoon traders. When I left you this morning at 5:06 in the AM briefing, I gave you this level here and said, “Okay, bull-bear zone. Are we going to drop to 44 from here?” At that time, who knew what we were going to do? All I said is, “20 hours of here, we are not going to stay here.” So the bulls lost control and gave it to the bears, and the bears went from this level down to the 44 level. Very cool.

I had two strong levels here. I gave you one of them. In the group, we had the second one, and we camped out in this strong range here and eventually broke out of it. So when we finally made it down here to the 44, I told the group, I put this on the chart: “The risk of short covering is high. The risk of short covering is high.” That means if we get back up above this opening, if we get back above halfback, don’t short this because there is no crazier strong price action known to man than risk covering than short covering. I don’t really think this was a short covering move. If it was, it was a weak one, but certainly leading up, I was looking for many opportunities to be long here today, and price action just kind of stunk.

So, I like to have a level, and I like price to touch it and bounce, not price touch it and do this, and then go up a little bit, then come back a little bit, then do that again, and go, “No, no, no, no, no.” I pay my trades to do this, not this, and this is what we got all day today. I had several entries that turned out, if I’d have just been more long-term sided, you know, not so scalp-sided, I would have done very, very well in my longs today, but instead, it was really a scratch day, nothing to write home to Mom about.

And towards the end of the day here, we started getting this trend line, then we went a little more north, then we went parabolic. No shorts above a parabolic move, in my humble opinion. It’d have been really neat if we made it back to the strong level, but I really love how we came to the strong level, we had a small reaction, and then we vomited straight down. In all honesty, to this strong range, which worked out very, very well.

Saw the day amazing, unfortunately, I was not able to be in this move here. I’m doing things in the morning with my wife, and that’s a better investment than sitting here and trading the pre-market. And I felt really good that I was calling the action correct here; it’s just price action didn’t behave well. Such as an example right here, I entered a long on this blue candle right here, and look at this, just back and forth, back and forth, back and forth, goes up a little bit and comes back at you. This is just real difficult to stay in. To me, it’s a higher risk to stay in this trade. I felt that we were going to comfortably go in this direction, but price just didn’t behave in a way to keep me in the trade. And oh well, it is what it is. There’s always tomorrow.

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