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Futures Trading Room – Overnight Overview of March the 7th 2016

March 8, 2016

This is the alert I sent last night:

If SPY closes above today’s open at 199,34 the following patterns will trigger:

SHORT PATTERNS: 162-341 (PRICE-BOLLINGER)

If that happens, I will enter SHORT.

Note:

Stop loss = 24 Emini points

If the market manages to keep today’s daily bar as an inside day one, it closes below 200 SMA and RSI2 is above 90, 6 out of 7 times in the past 20 years the night was BEARISH.
Considering a RSI2 threshold of 95 we get 4 instances, all of them were BEARISH.

The night revealed a solid bearish edge for the market. SPY gapped down -0,63%.

I closed the trade with profits of 8,26% and 11,8% on my two accounts. February was a boring month but sometimes it pays to be patient enough for a good edge to come out. After boring periods end, we usually face exciting periods with high frequency of trades.

However, it’s vital to keep trades frequency as low as possible to cut the risk of overtrading. Let’s see what will happen on March.

 

 

 

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