Thoughts for Wednesday 12/13
Bull unstoppable, PPI at 830 & FOMC at 2 tomorrow, Preserve your capital
Yesterday we had 4666 as bull bear going in the globex. Those who stayed long it paid well as price reached out to 96 after CPI print.
We had short setup given during night against 90 which played very well who wanted to take advantage of knee jerk reaction to CPI. We had short against 76 going into RTH which gave good enough points. I also gave a weak long to those who wanted against 60/62 which worked out well for those who longed. Room switched to long side once 80 started holding which gave 20+ points as I write this for our runner though we scaled out 75% position by the time it reached 90 as 90 was tough to crack.
Econ for week:
Night session Trading Suggestions:
I suggest to not trade night session from 10 pm to 2 am chop. If action has to happen than it will happen before 10 pm or after 2 am EST. You can generally play short on top level provided for nightly range and long on lower level of nightly range after 2 am or 3 am. But get out of the way if it rips or drops thru levels and wait for new opportunity or flip. And of course never add to loser and better yet cut it and reset.
Remember: I never short above or long below my marker. I wait for it to pause before it or come back to it from rip/dip and pause before executing.
Never take position before Econ like CPI Or FOMC. After econ watch for levels where it stops and how it interacts to decide long or short.
Recommended stop: -2 and go to BE on +2. Some ppl who can't reenter shall chose -3.5/4.
Scale out: 2 lots at +6/8, 3rd at +10/16, 4th leave runner at BE
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