Sideways Congestion with Algo Spikes and Drops

Yesterday’s emini index market session was a lot like yesterday: sideways congestion with an extra helping of algo-driven spikes and drops. To its credit, Crude Oil futures market (chart not shown) put in a trend-down day to release the pent-up coils of sideways congestion from 90s magnet.

8.1.12

Basically, it’s a matter of news-hostage illiquidity. Nobody who moves big size is active in the markets, leaving it to little more than algo-driven chop and drift. Everyone knows the key zones of heavy volume this week will start at 2:15pm today and 8:30am on Friday, and whenever the ECB rate decision is released. Everything else is lull-drift mode in between.

I’m going to produce three (3) daily youtube videos the remainder of this week profiling TF trades in CM Patterns ”Quick-Strike” mode, aka working with faster setting charts that offer more precision and greater number of signals.

8.1.12

Next time we might profile ES or NQ or CL or whatever else seems interesting at the time. Truth is, no real difference exists in any market or symbol any more, with a modest exception of the ES being most congestive than others all the time. Whatever any trader opts to work with is pretty much an equal choice in my opinion today.

8.1.12

The benefit of “QuickStrike” mode is earlier trade-entry signals and more overall signals. The disadvantage is more trade-entry signals. Any time traders speed up the process, they likewise inject greater degrees of difficulty. We’ve done plenty of profiling straight-up CM Patterns trading off a standard 1-min chart, and we’ll continue to do plenty more. In addition to that, we’ll profile some more advanced trading techniques for the benefit of our veteran team members as well.

In today’s case, I’m idle and away from screens until 2pm est. Whatever may go on in the markets before the fomc event will happen without me present. I’m pretty sure there will be more than enough price movement this afternoon that offers plenty of opportunity to make the day.

For more daily updates from Austin, visit his blog at Coiled Markets.