So yesterday we finally had some selling. Not that that is unusual. Looking at a daily chart we should expect some overall pullback in the market around these areas. I was looking at some profile distributions this morning and it looks like the market is doing some balancing. Today I don’t expect to much but I do notice that the internals are strong at the moment. I was very particular about watching the opening print this morning to see if it held. This is a strategy I am using on an automated system. Basically what we had was the opening print get tested and give way. I then short looking for the midpoint of yesterdays value area. It just about made it but then volume dried up unusually low so the position came off. If volume stayed I would have kept the position on but when volume on this futures contract dies down in the first hour that low my system pulls it. So it is what it is. Small gain. As long as it’s not large losses I am fine with that. It;s a good thing also because the opening print was tested again and gave way to some upside. I would not be looking for shorts again unless we get significantly below that opening print again.
You can see the opening action outlined in this profile chart.(learn more at – www.tradeinwaves.com)
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