I googled “define shadow box” today and this is what came up. It says to spar with an imaginary opponent as a form of training.
If you don’t understand the current market conditions then you’ve definitely been shadowing boxing. Truthfully that’s not the worst part; the worst part is you’re losing the battle. Have been able to identify that equities and oil have no follow through with continuing trending days? Have you noticed oil has been stuck in $10.33 range since roughly May 23, 2019 oil has been trading between these price ranges 60.86 to 50.53.
The last consecutive trending days we’ve had in oil began on 08/07/19.
That’s four straight days of higher highs. I know some of you all will say 08/22 and 8/23 were two consecutive days of lower lows but let’s keep in mind 08/23 movement was largely a reaction to the fed chair Powell speaking.
In order to win the battle you must have a trading plan going into the new trading session every day. Your trading plan must consist of the price you want and why? Your trading plan must give you clear cut instructions for risk management on the day and where you see value at price. If you don’t know how to properly apply some of the terms to your trading email me and I will give you more information to study. Understanding your market before laying any risk is how professional traders trade.
Today I expect the eia report to assist buyers in their quest to control trend. If buyers can push the market above the 56.76 level will see a screaming up trend today. However I don’t think this will come without a fight considering recent market conditions. If buyers fail to break above 55.96 to 56.30.I expect the market to reverse back to 55.08.
I have resistance levels at 55.96 and then 56.30 I will wait for these levels to be tested and traded through before getting long today. As you can see my approach today is very conservative. Now please keep in mind I’m bullish oil today but if oil were to sell off I wouldn’t participate in the sell off until the sellers have driven price below 53.79 with acceptance. If this happens my next support level will be 53.20. I have more levels below email me if you want all of my trading levels for oil today.
The emini S&P has continuously had 30 point trading ranges without any defined trend. I’ll be looking for text book entries today. This has been the most consistent way to manage my risk as of late. The wide trading ranges without follow through have truly hindered some trades I’ve grown accustom to. This is why I always say every trader must have a foundation. What’s your foundation and can you apply it every day with every trade? If you don’t know the answer you shouldn’t be trading.
Today I think equities can be bullish as well especially if oil has big day. the es will try to trade to 2889.00 if this happens look for the es to test yesterday’s high at 2899.50 if equities can get this high 2905.00 should be on the radar. Now with so much going politically and economically trend follow through hasn’t been there. this means we must look on both sides of the market.
I would like to see a selloff in equities personally but I won’t be convinced a selloff is real until the es trades below yesterday’s lows 2860.00 I think the buyers will do all they can to keep this market trading higher because if they lose battle of trend today the bottom will fall out and we will back trading at last Fridays lows.
I’ll be watching these levels to the down side 2860.00 yesterdays low to 2853.75
2848.25 to 2844.75
2841.25 to 2834.75
2831.25 to 2823.25
2812.75 to 2810.50
2810.50 to 2804.75
2803.00 to 2784.75
Stop shadow boxing prepare for the prize fight. I know you can do it Champ !!!
Have a great trading day. I look forward to talking to you in the trading sessions.