March 21 AM Levels

Hold The Line!

Since FOMC Wednesday we’ve had multiple lessons in price movements as we continue asking the question, “Is the bottom in?”

Overnight we got no clear answers.

But as we go into the 2nd trading day after FOMC, ES Bulls remind me of a famous movie scene…

There is a great scene in the movie Braveheart, where William Wallace, steadies his men on the battlefield, as the better equipped and larger English force bears down on them. As his rag-tag Scottish army stand in a long line waiting for the enemy, he calls

'Hold, hold, hold the line'.

Yup, that’s pretty much bulls right now :-)

It also marks 5690-5680 after 6 attempts to break thru, it still holds…

Let’s see…

Moving on…Yesterday afternoon I wrote:

If I could explain the importance of taking profits when they were due, I’d have to do no more than show the chart of today’s price action.

In the last 10 hours, 5760 down to 5683 back up to 5765 and back down to 5695 before finding a close near 5715.

Nearly 250 points of movement

The type of thing most professionals live for. But, most traders got whacked today because they simply don’t take profits.

Luckily for us, we did just fine.

We had one Trade March 20:

5690 entry ~7AM to 5702/5716/5740 all 3 targets being hit before 10AM.

The day presented plenty of other opportunities for those traders who didn’t get in that 7AM trade. But, knowing that overtrading is the #1 reason why traders fail (and being that I’m out of town), I stayed away from any additional trades.

It was the right move.

Now, let’s see what critical areas we’re looking at for today’s price action… and where we might find opportunity.