Monday, 30 April 2012

Monday's Value Slides

This morning, London time, was one of the quietest in the stock indexes. The open in the DAX had a bit of beef that failed very fast. It then drifted downwards for the rest of the morning. Friday's failure of the ES at around the 1405.00 was fairly important and was a sign of weakness. I'm running several option strategies on the U.S. indices. Friday's ES weekly call options that I was short expired worthless and I intend entering some more RUT option butterflies that will benefit if the market now pulls back.

Today's Market Profile chart on the DAX shows this weakness. Price opened above value and then developed value inside yesterday's value area. Even on a day trade and on a quiet day like this, there is a way to trade to make money. Having different weapons in your arsenal to trade these markets in transition is important for maintaining CP.

As you can see on the chart, the width of the TPOs shows accepted value inside Friday's VA. Then it was only a matter of time for it to drop enough to make a profit, start scaling out and trail a stop on any balance.


  1. Hi EL,

    What does "value being accepted" mean?


    1. Anon 11.19, It's a Market profile term. Dr Steenbarger gives an expolanation and places to look for more info, here:

  2. jenrique42

    yesterday I see they are leaving areas of distribution in the euro, however, with a little push only thing that makes the price is rising, and are the days like yesterday that I come to mind the words of EL "TRADING WHAT YUO SEE NOT WHAT YOU THINK OR IMAGINE" is something I have to keep working hard, is costing me and these are the days as I go negative on the market, for example, yesterday I thought it would to go long but I was short, in short I did the opposite of what I thought, looked as options for a change but ........ was not so

    I didn`t what I saw and I did what I thought or imagined, the result was a negative day for me this is where I see I have more problems with this attitude correct but I can not get into real because these days are the most more dangerous for me and the risk of ruin is present while you have these days


    desde ayer estoy viendo que estan dejando zonas de distribucion en el euro, sin embargo, con un pequeño empuje lo unico que hace el precio es subir, y son los dias como los de ayer los que me vienen a la cabeza la frase de EL de " TRADING LO QUE VEAS NO LO QUE PIENSAS NI LOS QUE IMAGINES", es algo en lo que tengo que seguir trabajando duro, me esta costando y son precisamente los dias en lo que salgo en negativo del mercado, por ejemplo, ayer pense que iban a ir a largo pero me puse en corto, en resumen hice lo contrario de lo que pensaba, ya que veia opciones para un cambio pero ........ no fue asi

    No hice lo que veia e hice lo que pensaba o imaginaba, resultado, fue un dia NEGATIVO para mi es en esto donde veo que tengo mas problemas en corregir pero con esta actitud no puedo entrar en real porque son estos dias lo mas peligrosos para mi y el riesgo de ruina esta presente mientras tenga estos dias