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2018-06-13
ES #F Weakening Demand


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

Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.

Yesterday the market traded to a high of 2794.00 again, exactly at our resistance identified, before closing 5.75-points higher than Yesterday at 2792.50. Demand has weakened on the Daily chart and the 3-Day and Weekly charts still show Supply is dominating. This may lead to more sideways price action. The expected pullback has not materialised and can still happen this week with support at 2756.00 to the down side.

Daily Signals June the 12th

Dashboard:

The Supply and Demand Reading (1st row) came it at 1.1 with Demand dominating the trading session, but weakened.

Supply and Demand Direction (3nd row) was to the upside (blue up triangle), indicating upwards direction, with no substantial strength.

Average Supply and Demand Volatility (4th row) is still below 100% and is bullish. The change in average Volatility from the previous day was negative 2 (Demand weakened) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had a balanced market signal on the signals board (1st row).

Daily Volatility direction (2nd row) was Down (maroon down triangle). The change in daily Volatility from the previous day was negative 25 (Demand weakened) shown on the right of BXB Dashboard.

The overall NY Stock market traded Lower for the day (maroon down triangle in 3rd row).

48% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 50%, a negative sign for the markets.

We are neutral as to the near-term direction, but bullish on the longer term. A pullback in the near term seems likely.

 

Caution:

3-Day and Weekly charts show Supply dominating at the time of this writing. A pullback to the 2756.00 level remains a possibility, before another move higher.

Intraday

We took two opportunities during the last trading session on the 26-minute chart below. The first entry was stopped out at a loss, but the second one resulted in a nice move up. Entries and exits are shown with arrows:

Strategy is simple, enter when 2 Dashboards align and exit when two opposite triangles on BXB Dashboard appears, shown with arrows on the chart. We do not take trades when the of Supply and Demand Sentiment tool is at or near extremes (over-bought/sold) in the same direction of the possible trade. The last sub window on the chart below shows the Greed / Fear sentiment measurements of Supply and Demand Sentiment tool. Similar to an Oversold / Overbought situation (but without using price related formulas).

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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.

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