Wednesday, September 4, 2013

Mini-Russell Day trading strategy

10:30am EST

Mini-Russell Futures Analysis:
Russell VIP Chart
The 30-minute VIP chart is showing us in the middle of the trading-range this morning and we can see 3 days in a row of sideways-trading-ranges.  We know this is a big red flag telling us to treat this market personality as a sideways-trading-range.

We want to buy the PLOD support at 1066.2 and sell the PHOD resistance at 1028.7.  We will avoid trading in the middle of this range, and remember to look for the fake-out-breakout above the PHOD or below the PLOD which should be followed by the ‘InsideOut Set-up’.

Russell Anchor 1
We can see a price-wedge on the 5400-tick chart this morning, telling us to buy the lows and sell the highs of the trading-range we are currently in.  We can see major support levels below us at 1000.0, 990.5, 985.4 and 975.6.  We also have resistance levels above us at 1034.1, 1040.7, 1050.1 and 1055.6.  This price-wedge tells us that we can sell at these resistance levels or buy at the support levels with the same effectiveness, in other words, there is no directional-bias with a price-wedge.

Russell Anchor 2
We can see the sellers have tried, and failed, to move prices below the 1000.0 big-round-number.  It appears every time the sellers get a new lower-low they cant keep it moving lower and we see a quick bounce back higher.  We have resistance levels overhead at 1024.9, 1029.3 and 1034.1 along with a trend-line to act as additional resistance.  We know that there is no directional-bias at this time, so selling at these resistance levels is an easy option for us today.

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