Wednesday, March 12, 2014

Morning Update for Wednesday, March 12th

Major Support/Resistance Levels- ES






Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change: Net short
Inside Day/Outside Day:Outside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up: ZO (Oats), GC (Gold)
Down: NKD (Nikkei), ZS (Soybeans), ZM (Soybean Meal), SB (Sugar), ZL (Soybean Oil), CL (Crude Oil), KC (Coffee), HO (Heating Oil), PA (Palladium), ZC (Corn), HG (Copper), CC (Cocoa)



News for the day:

Petroleum Status Report: 10:30a
Treasury Budget: 2:00p

*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: I had a conversation with a fellow trader the other day about our trading strategies and approaches to trading the markets.  He uses more of a regression to the mean strategy and looks to fade moves in either direction. I asked him how he has been successful in the giant bull market we have been in dating back to 2013. His answer was simple: Trading small and diversifying across markets.  While the cloud system is more of a trend following method,  it is clear that various ways exist to be profitable as long as the discipline is there to carry out the plan. 
The ES is trading below the high volume level that had been accumulating for the past 5 days and currently is outside of Tuesday's range during the globex session, both signs of selling.  There is still the gap to fill from March 3rd, so if the liquidation continues at the open, the first short profit target will be 1849.5. Intraday edge is bearish.



Stock of the Day: Plug Power Inc. (PLUG)- Shares down 40% yesterday









ES Daily Trend: Bullish






ES Weekly Trend:  Strongly Bullish





ES Monthly Trend:  Strongly Bullish 














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