I came to today’s session with an eye towards caution. I was going to be perfectly content to not place a single trade the whole day as I wasn’t expecting much movement. My suspcions were confirmed when after the opening 5-minutes, the ER2 barely traded more than 2,000 contracts!!! It usually trades 5-10k in the first 5 minutes.

But then something interesting started to happen. As price started to roll over I noticed a beautiful 610-tick chart (5-minute as well) TRIX Divergence. Price had clearly made a higher high, but the TRIX was well off its previous highs.

What’s more is that the Market Delta chart (not shown) was showing clear demand stagnation as there clearly wasn’t an adequate # of trades occuring at the ask needed to sustain a rally, especially after the, what should have been, powerful 5-minute upside breakout this morning. Such a move typically generates attention and causes prices to rally. When such reinforcements failed to arrive, that meant that all those people who had bought were going to be stuck & scrambling to unload as prices failed to move higher.

So when the NYSE-TICK rolled over and sported a nice 2nd TICK Hook-, I went short at 795.90. I had a target of 794.20 which would have taken me to my Net Daily Goal but I chickened out as price stalled a little bit around the rising trendline. So i bailed and locked in my 1 point profit. At the time I was just happy to take anything out of a day when I was planning on making no trades. But after I exited price continued to drop another 3 points :-(

Oh well. I didn’t make any other trades today as it was very choppy for most of the day with only a few sporadic moves interspersed. Overall, I’m happy to report finishing off my first profitable week since taking a step up to the next level according to my trading plan.

I’m off until Monday so be safe and have a wonderful Thanskgiving!