Mastering the Market Waves: A Deep Dive into Friday's Trading Adventure

Friday's trading session brought anticipation as traders eagerly awaited the release of the Producer Price Index (PPI) report. In this blog post, we'll dissect the day's market movements, exploring how economic data and technical indicators influenced my trading decisions, leading to a mix of successes and lessons learned.

The Sideways Prelude: As the trading day kicked off, price exhibited a mostly sideways movement. A brief dip around 6 am saw prices touching the S2 level on the daily chart at 4791, but the market quickly rebounded, trading around the 4800 level until the eagerly awaited 8:30 economic data drop.

The PPI Spike and First Trade: At 8:30, the PPI report was released, surpassing expectations and triggering a spike in price. Seizing the positive momentum, I entered my first trade at 4813, opting for a long position. The decision was backed by the positive economic data and the alignment of all three PPMs spiking above both derivatives into a positive slope. PPM 1 and 2's proximity to trend mode at +0.20 further bolstered confidence, along with positive projections from PPM 2 and 3.

Profit-Taking: Price held above its moving averages, and the PPMs maintained their first derivative, signaling a trend towards the daily R1 level at 4826. As the cash markets opened at 9:30, with PPM 1 and 2 reaching peak values, I capitalized on the positive trend, selling at 4834 and securing a 20-point profit.

Midday Consolidation and Afternoon Reversal: Between 11 am and 1 pm, price drifted sideways within a ten-point range, mirroring the PPMs' signals of a period of consolidation. However, after 1 pm, price began to ascend again, reaching intraday highs at 4822 around 2 pm before a subsequent downturn.

Afternoon Short Attempt: Spotting weakness in the final hour, I attempted a short trade around 3:30 at 4814. Key indicators suggested potential downside – PPM 1 under its second derivative, PPM 2 under both derivatives in a negative slope, and PPM 3 projecting a negative slope. Despite a late-day upward move, price held below my stop at the RTX level on the weekly chart at 4820. Price drifted back down to my original price for me to cut the trade for breakeven at 4pm.

Friday's trading day was a mix of successful trades and valuable lessons. The morning's successful long trade capitalized on positive economic data and strong technical signals. The midday consolidation phase and the afternoon short attempt, while not as fruitful, provided important insights into the significance of trend modes and indicator follow-through. Each trading day is a learning opportunity, and Friday's experience will contribute to a more informed and refined approach in future market endeavors.




Comments

Post a Comment

Popular posts from this blog

Mastering the Art of "Buy the Dip": A Deep Dive into a Winning Trading Pattern

Image
  In the dynamic world of trading, every investor seeks that elusive edge, that golden strategy that can consistently deliver profitable outcomes. For me, this journey led to a meticulous exploration of the "buy the dip" scenario, a strategy that has significantly refined my trading approach. While I haven't maintained a daily trading blog during this period of exploration, I've delved deep into testing new setups, ultimately uncovering insights that have reshaped my trading landscape. The essence of my refined strategy revolves around a keen understanding of Bob Kendall key indicators, notably PPM 1, PPM 2, and PPM 3, coupled with a strategic approach to profit-taking using the 40-period moving average (40ma). When initiating a "buy the dip" trade, timing is crucial. After observing a downward momentum, I patiently wait for specific signals to align before entering or adding to a position. PPM 1 must rise above both of its derivatives with a positive slope,...
Read more

S&P Micro Futures Forecast for 7/2: Monthly, Weekly, and Daily Analysis Using the Bob Kendall Indicators

Image
As we enter a new trading month, it's time to analyze the S&P Micro Futures using the Bob Kendall indicators. Given that July starts with a short holiday week due to the 4th of July, we can expect lower trading volumes and potential range-bound movements. Let's dive into the monthly and daily charts to outline support and resistance levels for the upcoming trading sessions. Monthly Chart Overview PPMs Analysis : PPM 1 and 2: Both are above their derivatives and remain in trend mode (>0.25), indicating strong long-term support. PPM 3: While still above trend mode, it is starting to pierce its second derivative, which could test its positive slope. Key Support Levels : 10MA: Long-term support at 5124. Weekly Chart Analysis The market grid is starting to flatten out, which suggests potential range-bound trading for the week. Support Levels: 10MA at 5418: This level provides strong weekly support and maintains a 0.62 level on PPM 1. S1 and S2: Strong support at 5501 and 5478...
Read more

S&P Micro Futures Forecast for 6/10: Key Levels and Insights Using Bob Kendall Indicators

Image
As we head into a new week, it’s essential to assess where the market grid stands and how it will influence the daily analysis. For tomorrow, 6/10, using the Bob Kendall indicators, here are the key levels and insights to watch out for in the S&P Micro Futures. Weekly Chart Analysis Support Levels: S1 at 5323: This support level coincides with the 10 and 21-day MAs on the daily chart, reinforcing its significance as a support zone throughout the week. S3 at 5251: This level is crucial as it aligns with the 10-day moving average (MA) on the weekly chart, providing a strong support base. Resistance Levels: R1 at 5387: This resistance level is slightly above R1 on the monthly chart at 5378, marking it as a critical resistance point. R3 at 5459: This aligns closely with R2 on the monthly chart at 5471, indicating a major resistance zone if R2 holds. Daily Chart Insights for Tomorrow  Support Levels: S3 at 5323: This level aligns with the 10 and 21-day MAs, providing a robust suppor...
Read more