Info!! Pre-Opening Briefing: Continuing The Trend

Here's how nosotros await (bottom chart) inwards the S&P 500 e-mini (ES) contract going into the 7:30 AM CT jobless claim numbers. Note the resistance betwixt 912 too 914, equally nosotros proceed inwards a short-term downtrend mode. If the 7:30 AM let on cannot motion us inwards a higher house that resistance level, I'll hold upward looking for a exam of Wednesday's lows below 900. Note that we'll stimulate got a few opportunities to motion this morning, alongside Treasury Secretary Geithner talking at 8:30 AM CT too Leading Economic Indicators too Philadelphia Fed reports at ix AM CT.

I respect it worth tracking involvement rates too the dollar inwards answer to these releases too events too correlating those moves to stocks to option upward on emerging too continuing intermarket themes. In general, if the numbers cannot motion us out of a value make that was established upward to that point, I assume that the tendency that has been inwards house volition remain intact. Once again, I'll hold upward tracking all of this intraday via Twitter (follow the tweets here).

8:15 AM CT - Update: We traded higher on the jobless claim numbers, simply stimulate got stayed firmly inside the overnight range. Note inwards the middle Market Delta nautical chart that we're directly trading inwards a higher house the day's volume-weighted average cost (VWAP; reddish line), equally the dollar has weakened versus the euro too 10-year rates stimulate got bumped higher. I'll hold upward watching to run across how nosotros merchandise approximately VWAP to handicap the odds of taking out Wednesday's lows inwards early on morning time merchandise vs rest inside the overnight make trade.

10:24 AM CT - I've added a fresh Market Delta nautical chart (top) to exhibit how we've been accepting value inwards a higher house the VWAP (red line) too approximately the 914/915 ES resistance. This raises the odds that, rather than trap bulls, we'll level out bears past times taking the marketplace inwards a higher house that resistance. I'm watching TICK too intermarket themes (weak dollar, potent 10-year rates) to run across if that scenario unfolds.
.

Info!! Pre-Opening Briefing: Tracking Book At Price

One argue I similar the Market Delta charts is that they render me amongst a quick visualization of book at price, too then that I tin run into where the marketplace is trading relative to value areas that are building.

As I write this earlier the Mon marketplace open, discovery how nosotros direct keep accumulated book betwixt 932 too 934 inward the ES contract too forthwith are edifice book lower, roughly 930, equally we've pulled back.

With the marketplace railroad train to gap higher at the open, I desire to run into during early on morn merchandise if nosotros direct keep value inward a higher house or below these overnight reference areas. If nosotros construct book inward a higher house 934, it is a clear indication of fresh buying involvement too the possible outset of a bullish tendency day. If nosotros cannot concur the 930 area, I would reckon the possbilities of a reversal dorsum into terminal week's range. In a gain market, nosotros should run into that 930-934 surface area concealment the day's volume-weighted average price, amongst the marketplace oscillating roughly that.

By playing out these "what-if" scenarios prior to the open--and mentally rehearsing what nosotros would create nether each scenario--we tin get ourselves psychologically for the day's trade. The primal is to flexibly reckon a gain of scenarios, non larn locked into whatever one.
.