The political battle around the repeal of health insurance legislation bounced the ES (and gold) around on Friday.
The ES dropped below Nat’s keyline in overnight trading, then moved well past it in the day session.
The price started to fall as news that the health insurance legislation would not pass reached the market. The decline halted less than 2 points above Nat’s buy level.
Then the market decided that not repealing Obamacare might be beneficial and quickly recovered all of the loss.
For subscribers to the live trade room there were two good opportunities, worth about $750 per contract in each direction.
For overnight traders the position was much more difficult. The initial short had a drawdown of about $350 per contract, and many traders were stopped out.
After the move began those still in the trade (or those we re-entered) needed to set their exit more than 2 points above Nat’s sell level. If they didn’t, their potential profit evaporated as the market retraced back to the entry.