I trade everything around the

    Posted by ssaffer on 1st of Mar 2020 at 12:55 am

    I trade everything around the $ES.  My trading plan for $ES is all trend based.   I sold one $ES contract on 2/20 with a break of the trend on the Daily.   And I am not trying to brag about the trade, I just want to show you that when the conditions are ripe and the leverage you have with $ES futures.  Then I use the SPY system with an another account.  This working position allows me to take some loses on the SPY system trades.  Now if the market bounces Monday, I will be profitable on the last SPY option trade in the SPY system, and I will close out my $ES position.  This gives me the ability not to panic and let the trades work out.   This is how I hedge but always going with the market trend with overall trading bias.   The second file is a chart of the SPY daily.  This breakdown was no surprise.  You had huge bearish divergences on RSI, MACD, spinning top and a break from a megaphone top.  This set up was the same the break in 2008.   The market was already deteriorating and the Coronavirus was the match that lit the fire.     

Newsletter

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