Monday, September 30, 2013

Mini-Russell Day trading strategy;

Mini Russell Anchor CHart
We analyze the Mini-Russell Futures and the anchor chart shows us a red cloud which suggests a strong bearish market sentiment or trend in the price-action this morning.  Lower-highs and lower-lows suggest that the sellers are in control and that we should seek selling-opportunities for the high-percentage-trades today.

We dig in deeper into the anchor chart on the Mini-Russell and we see resistance levels overhead at 1068.8 and 1066.7 which we will use to sell short once we see these levels HOLD as resistance.  As soon as the levels hold as resistance we will then look for the wave-pattern-short to enter with a profit-target down at the next support level which is at 1061.6.

The 15-minute VIP chart of the Mini-Russell shows us some very important clues that tell us to buy the Mini-Russell this morning until something changes.

Mini Russell Anchor Chart
First, we see the closing price on Friday was in the middle of the trading-range which leaves the door wide open for buyers OR sellers to take control on Monday morning. 

Second, we then looked at the opening-print at 930am EST and we see a BIG GREEN CANDLE along with a BIG GAP DOWN.  We know the big gap down suggests the sellers are in control, however, a little bit of patience goes a long way, and we see the opening-print is clearly bullish which tells us to look for the gap to be filled and we want to buy long in the process.  Use the PLOD and the PHOD as your best profit-targets for the buying opportunities on the Mini-Russell, and remember this is technically counter-trend, so take our profit-targets quickly and be on the look-out for a price-reversal and a return to the long-term trend down.  I would expect that price-reversal to occur at the PLOD if it wants to move lower.

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