Good morning traders!
Emini remained between levels OVN with another attempt to take out the 4000 LVN but no follow through.
4034 long target ended up being HOD but I need to be clear we never traded down to long level all session to initiate the trade. This is to note how well the target played out yesterday.
Now let’s dive into why I wanted lower to get long rather than the 4000 LVN.
OVN session we remained inside yesterdays range so moving forward I will look to have generally the same levels with no thesis change.
Shorts near VAH and Longs near VAL but I will add on more to what was said in the Telegram (image above). We all know 3880 will not trade in this session so putting our long level there doesn’t make sense. Today I will move our long which was 3984 and bring it down to 3953 as I think if we get below 3990, sellers will start to step in for a move down to 3953. An ideal session today would look like a move up to 4022 then sell through previous day lows to 3953 which I will look for longs. Anytime I expect buyers to step in at some point following selling, shorts will be covered leading into that level so I can give time to position for long. If no areas of interest for longs then I look to soak runners. To add we have another eventless session followed by another tomorrow so I don’t see a move out of current range being sustainable. More than likely the move will revert back above 4000. As always, updates will be sent out in the telegram. Volatility works hand in hand with amount of updates sent out in telegram.
Ultimately looking for a move below 4000 LVN to 3950s to test the waters. This is POC so volume may pick up and we begin to bounce. From this point price may bounce 15 handles then sell 15 then bounce 15… always make sure to lock some in and take some risk off even when looking for 40 handles, take some off at 15. Refer to this post here on futures risk management for insight into exactly how I manage risk.