Incredible. Must determine if I can trade Micro E-Minis in premarket. My levels on /ES work out so frequently, with such consistency, that I feel frustration and a tinge of FOMO not trading them in some capacity. Technical patterns appear with abounding clarity on /es & more often than not seem to play out. Once I build up a small cushion this month, it may be worth considering experimenting with some Micro contracts. I may be better off waiting, as the equivalent of even 3 micro contracts is the same as 250 shares of SPY if my late night, unable to sleep, brain math is correct.
I’m chomping at the bit to get going with futures after my weekend of education, but I must curb my enthusiasm & stay the course I’ve laid out for myself. Better to be successful in a year, going slowly & steadily, then see some quick success only for the fallout to be just as swift.
Bearish sentiment seems to be continuing across market after brief relief rally over the last couple weeks. Every sector is down premarket.
Consumer Discretionary
- Gapped down & trending down in premarket, consistent downtrend on daily.
- AMZN | Approaching gap area, need to see if gap still applies. Gap did fill but not with considerable volume. Worth keeping an eye on to the downside.
- NKE | Selloff on extraordinary volume Friday, approaching significant 100 daily level. Currently deliberating at this level pre-market. Could see chop near here, but if /es sells off with conviction, could see continuation. Likely consolidation, but worth keeping an eye on.
Energy
- Gapped up premarket with immediate selloff. Daily could be second leg of multi day bear flag?
- EQNR | Approaching juicy gap area & with downside momentum in favor of the fill.
- CVX | Looking to open near daily 146 level, but with chop having taken place beneath. could be good area to trade off but exercise caution. bounce manifested on Friday but on weak volume. Same multiday bear flag pattern seemingly present on daily chart of CVX, similar to index.
- XOM | Same as CVX.
Financials
- Saw healthy rebound with considerable volume on Friday, overall daily in downtrend, gapping down premarket
- JPM | Currently in massive 5 point gap area, gap on daily. If market weakness continues this looks like promising play.
Industrials
- Similar to Financials in that there was rebound with some volume, but gap down in premarket
- UPS | Looking to open below meaningful 182.5 level after massive gap down. Potential for continuation seems present if market weakness is maintained, but not the cleanest setup. Beware gap fill to the upside.
Information Technology
- Beware gap fills to the upside
- MSFT | Considerable 4 point gap down, approaching hourly 255 level. Beware gap fill to the upside if market regains strength. doesn’t seem likely at this rate, but could be vicious if it does manifest.
- AAPL | Approaching 137 level, could be reasonable area to trade from.
Utilities
- On a considerable tear, seems to be strongest sector in the market over the last 2 weeks.
- NEE | Light volume above 80.3 could see move to hovering daily level of 81.3. If demand shows resolve, worth taking 20 share position.
First day of the month sizing up. Exercise patience & caution. Consider the fact that this is the open after a 3 day weekend. /ES looks week, but give the market time to release itself of any pent up executions that may explode at open. JPM still looks like most promising move. The right play is to short with a stop at 112.5, and to pick a size that will enable you to hold through any pain up to that point. Let candles close on one minute. do not get shaken out until stops are hit with candle closes.