Breaking News
0

Emini Reaction To Election More Important Than Election Result

By Al BrooksStock MarketsNov 07, 2018 11:14PM ET
www.investing.com/analysis/emini-reaction-to-election-more-important-than-election-result-200356627
Emini Reaction To Election More Important Than Election Result
By Al Brooks   |  Nov 07, 2018 11:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Pre-Open market analysis


The Emini triggered a buy signal on the daily and weekly charts yesterday. The odds are that the October low will be the low for the rest of the year. Yesterday’s rally and the October bull trend reversal are strong enough to make a test of the October 17 high likely in November.

As for whether it would have been better for the market if the Republicans maintained control, that is nonsense. The only thing that matters is what the institutions will do in response to the result. No matter what the election outcome, its effect will probably be brief. Washington is doing very little harm and very little good.

The technical picture is more important. The bulls have a strong reversal up from a wedge bottom on the daily chart. Therefore, the odds are that there will be at least 2 legs up. That means that traders will buy the first selloff. Also, they will look to sell near the October 17 high at the start of the parabolic wedge bear channel.

Overnight Emini Globex trading


The Emini is up 20 points in the Globex session. There will therefore probably be a big gap up today. Since the open will be far above the EMA, the bulls will probably not be able to get a strong bull trend on the open. Traders hesitate to buy when the price is far above average. Consequently, today will probably have a trading range open for the 1st hour where the Emini trades sideways to down to near the EMA. If today will be a bull trend day, the bulls will try to form a double bottom or wedge bottom near the EMA. The bulls will look for a reversal up.

Since the Emini will probably have at least a minor leg down in the 1st hour, the bears are hoping for a strong bear trend day. But, yesterday’s late rally was strong. Consequently, even of the bears get a strong selloff on the open, the odds are that it will be a minor reversal down to around the EMA. A trading range is more likely than a bear trend in the 1st hour. However, if the bears can continue the trading range for 2 hours, they then would be able to create a credible major trend reversal setup for a possible reversal down later in the day.

Will the gap up close today? It might, but yesterday’s strong rally and today’s gap up make it likely that the bulls will buy the selloff, even if it falls below yesterday’s high.

Yesterday’s setups


Emini Failed Bear Trend Reversal Became
Emini Failed Bear Trend Reversal Became

Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.

Emini Reaction To Election More Important Than Election Result
 
Emini Reaction To Election More Important Than Election Result

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
The Surfer Trader
The Surfer Trader Nov 08, 2018 5:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm very good calculating yesterday's probabilities yet I fail anyway
Reply
0 0
Brett Hoerr
Grateful55 Nov 08, 2018 2:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks i like the article and found it very helpful
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email