This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
With the extended weekend and holiday, overnight price action continued to consolidate above Friday’s intraday high. Friday’s price action during market hours provided a great example of market cycle phase 2 with higher highs and higher lows based on flag patterns and swing pivots.
Notice that the markets did have activity on Monday (President’s Day Holiday), but it was minimal for a very short period of time.
From a birds-eye view, price action has been in a strong market cycle phase 2 the majority of February 2017 with higher highs and higher lows for an extended period over multiple days and continues to present several LONG setups (i.e. Flag patterns) over the last several days (no reason to SHORT these markets the last few days).
Pre-market Economic news and reports will be minor until later in the week on Thursday and Friday.
Pre-market price action on the 5-minute charts is range-bound with minor upper resistance from overnight price action finding resistance from a 3X top area. With a small flag pattern forming heading into the opening bell, we will be cautious heading into the beginning of the trading week.
|Sorry, you do not have access to this content.|
We took an aggressive LONG entry and with the immediate momentum in our favor, we tighten our stops and took 2+ points profit.
Review all of our trades in the Quick Hits For Fast Profits Summary table…
With price action in a strong market cycle phase 2 with higher highs and higher lows on the 1-minute chart, we took an aggressive LONG position based on flag pattern and retest setup. We manage the trade on the 1-minute chart and tighten our stops after the overlapping 1-minute bars. We took 1+ point profit.
Another market cycle flag pattern setup LONG on the 1-minute chart with price action at all-time-highs. Took 2+ points profit.