Opportunity

CL: yesterday’s opening 5min range was roughly 35 cents wide. That happened to also be the entire pit session range from there thru the end, as crude oil went nowhere on no volume.

CL & TF 5 Minute Charts 5/12/14

S&P500 5 Minute Chart 5/12/14

CL: yesterday’s opening 5min range was roughly 35 cents wide. That happened to also be the entire pit session range from there thru the end, as crude oil went nowhere on no volume.

Contract rollover is at least a week away. No reason why this market should be so uber-dead, but there it is on your chart in front of you. Past three sessions have been straightline chop and drift with one brief and abrupt exception last Friday.

The days of 200 – 300+ cent intraday price ranges with multiple price swings greater than 100 cents each are nothing more than distant memories now. Fond memories for sure. But distant, just as sure.

TF: excerpt from CMLive HotComm yesterday morning…

09:25:26 {austinp1} gap-up open pending in stocks… typical monday
09:26:01 {austinp1} countless Mondays the past few years have been gap up, early ramp and all-day flatline pinned
09:26:16 {austinp1} let’s hope this isn’t yet another one of those

Unfortunately, it was yet another one of those. Markets opened, fluttered inside open ranges, fired straight up in the air, squeezed to session highs early, and died inside flat coils for endless hours to follow.

In my case I tried to buy TF 1113 in the early break, missed getting filled by mere seconds or maybe even fractions of a second. After that, I spent numerous minutes to follow looking for a methodical entry long but none materialized. Then I left the screens at noon to be productive with the rest of my day while market inaction offered no potential production for traders at all.

ES: similar story to TF, except long trade signals offered more chance to fill. The overall 12-point range was a mere fraction of TF’s range but bigger than crude oil’s range, which I thought would never happen in my lifetime yet here it is. ES traders could have plucked a small handful of points from the first hour levitation, and then it was done for today.

That’s how futures trading goes when VIX levels read 11+ while markets get pinned dead flat on nil volume. Spot FX pairs moved well overnight, but I was not up early enough in the wee hours here to trade them. Traders who were present at their screens had plenty of chances to create success.

Moving markets offer opportunity to all, flat markets offer opportunity to no one at all.

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