FRI 5/13/2011

We should be back on schedule now. The blogger service was down Friday, and it was a half day of trading by choice.



TODAY 6E:


The 6E was in a down channel for the Euro Zone hours, with a small, 2 bar rally spike around 8:30 EST.  The downward pressure (#1) continued,and was very clear on the global chart.  The global is preferred over the rth at the open of a trading zone.

There was a double element failure at b10-11 (the EMA and upper channel #2) that was a long term short hold.  Elements are any items added to your chart to provide a better understanding of what the market is attempting to do.   It was a long term hold since the follow up challenge at b15 fail too.

The BO of the lower channel (#3) was successful, leading into the Midday lows.  Exits for the hold would be at 50% of the BO run or at the lower channel touch, which was approximately the same levels today.

The bullish PB was playable, but came after we were done for the day.

TODAY:  ES

The Es was trendless coming into the 8:00 to 8:30 A.M. EST.  BO Targets were established at 52.5 and 47.75, and we still had the important 1350 support.  The 1350 broke first, and we had price consolidating just about the BO.  B278 breaks, and is the key to the "short trading"day.

B1 challenged three elements:  the BO target, the EMA, and the bear TL.  Again, clear on global view, not so clear if that's your first rth bar look.  For rth, b3 was the first reversal, and b6 failure of the EMA and TL is a short opportunity.

The first trade on the ES side was the second reversal at b9.  Price stalled just under the lower target near b14.  We have three element converging: the EMA, the lower BO target, and the TL.  The more elements involved, the higher our expectation that a trade setup will be successful.

End of the week, time for some R & R.