The community is delayed by three days for non registered users.

The corrective decline is not

UPDATED

Posted by private on 19th of Oct 2022 at 05:41 pm

The corrective decline is not over, based on your wave count, is it? There were 5 waves down into today's low on 15-minute charts. However, the PPO on 1-hour charts wants to make another push lower, and a PPO on 4-hour charts has just made a negative cross. I read this to mean that a move higher tonight should be sold into tomorrow morning. There is a squeeze firing on 15-minute charts to the upside, hence I expect a move higher tonight.

ES completed 5 waves up on 15-min charts with a high last night. On 1-hour charts, it is in wave 4 which could retest 3660 or even 3600. A suggestion for you is to get an indicator with a wave count on your preferred time frame. PM if you wish to know what I use.  As for a market direction, you are correct. I use 9 and 18 EMA on 1-hour charts and look for a crossover. The direction is down at the moment. FWIW.

The wedge posted in chart 14 last night is close to breaking. It had only 3 touches and not 5, so it should not. If it does break, my target is near 3660. If it does not, I will do nothing and wait for it to break. That is my plan. Feedback is welcome!

so sell 3735 and buy 3660 to cover on ES?

yes, the strike must coincide with the minimal target expected. I would use spreads for leverage and control of decay for OTM puts.

Steve, what are your suggested trading plans for today: to sell the supply zone and to buy the supply zone, or only the former (which is counter-trend)?

December puts ITM offer most reward, 3500-ish OTM offers a low-risk high-reward trades. 

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!