System trades for Jan. 28, 2016

Both the ES and the Oil futures offered good trades today for swing traders, and more difficult but still profitable opportunities for traders monitoring the market during the live sessions.

The ES produced one solid move off Nat’s control line that reached a maximum of 22 points, before reverting and whipsawing back and forth across the line.

The oil futures were very similar: a solid move early, followed by range trading.

Both markets gave good entries for swing traders who got in early; capturing the intraday moves after the early breakouts was doable, but tricky. Here are the charts.



CLH6 Jan. 28, 2016

The oil futures moved up from the overnight low to Nat’s control line and rallied sharply through the short entry level.

The price hit a recent high near $35, but quickly fell back into a trading range defined by the Control line and the Short entry.

That range was about $700 per leg, so traders who caught on early had a very good day.


ESH6 Jan 28, 2016

ESH6 Jan 28, 2016

The S&P500 mini-futures did something similar. They moved up overnight and stalled at Nat’s Control line long enough for traders to open positions, then rallied 22 points into the Open and the high for the session. The minis stalled well short of Nat’s short entry and dropped through the Control line before reversing and settling into a twitchy back-and-forth movement that never really developed any momentum. A difficult market to trade without expert guidance.

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