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Assessments / Blog


2018-04-20
ES #F Pullback as expected


The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals.

Readings are based on Supply and Demand and Volume obtained from raw internal data of the total market. It is updated in real time during regular trading sessions and does NOT take into account any price indicators or mathematical formulas using price. We do however show the cumulative price change for the trading session and in some instances assess price movement’s relationship to Supply and Demand. It is therefore fair to say that the readings and signals are independent from other popular price indicators and others shown on the chart. The readings are an independent assessment of the one and only measureable fundamental market mover: SUPPLY and DEMAND. It does not matter if price is influenced by a geopolitical event, seasonality, fundamental economic data releases or sentiment driven news, etc. It all reflects in Supply and Demand, leaving “footprints” by the “Big Boys” or “Smart Money”.

 In our April 19th assessment we warned about the Balanced market, weaker BXB readings and a possible pullback. This is exactly what happened Yesterday, the market closed down 17 points.

Dashboard:

The Supply and Demand Reading (1st row) was -1.1 Yesterday which indicates moderate domination by the sellers.

Supply and Demand Direction (3nd row) was to the downside but not strong (maroon triangle), indicating no substantial strength to the downside. Ideally we want to see a red coloured triangle for substantial strength down.

Average Supply and Demand Volatility (4th row) is still below 100% and bullish. The change in Volatility from the previous day was negative (bearish).

BXB Signals:

On the signals board we had a down triangle indicating a selling signal.

Daily Volatility direction (2nd row) was down (maroon triangle).

The NY Stock market traded upwards for the day (blue triangle in 3rd row).

47% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 40%.

In short we did see moderate weakness and Supply Dominating Yesterday and price went down 17 points, and the expected result occurred. Some sideways price action may occur in today’s trading session as we got some mixed signals. Be careful to take any positions today, until you see some alignment of the signals in the same direction. On a balance of probabilities price can go down a bit more before returning to its upward path. Supply were dominant but only by a small margin and the situation can change quickly.

Intraday

There was only one good opportunity and one other opportunity that did not worked well, during the trading session Yesterday on the 26-minute chart below:

Marked with arrows on chart. Strategy is simple, enter when 2 Dashboards align and exit when two opposite triangles on BXB Dashboard appears. Red arrows drawn on chart show entries (short) and green arrows show exits.

RISK DISCLOSURE:

The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

Trading Forex, Stocks and Options, Futures and any Cryptocurrency, Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith.


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