Trading plan for Jan. 14, 2015

150113-ES-dailyES whipsawed again. It had a big run up before the European market closed, then sold off again. Even though it recovered some of the loss, it was still down 6.50 points for the day.

It had a wide trading range – 50.75 points movement. The January option expiration meanline is lying at 2025 level, and the futures whipsaw up and down between 2050 and 2000 control line. Yesterday’s move shouldn’t surprise us. And this kind of move will continue.

Today should see the same high volatility moves as yesterday. Overnight the ECB may announce a new QE plan and could squeeze yesterday’s shorts… or alternatively start a big run down if that new QE plan is not as good as the Street expects. One way or other, a wild move still could be seen.

For the downside, the 1995 level is key. A move below it could lead price down further toward 1990-89 or lower to 1980-75. For the upside a move above 2055 could squeeze the shorts and push the price up to 2060-65 or higher to 2070-75. When price is in a big run, stay on the sidelines until we see the speed slow down.

Paid members, download the full trading plan with the buy/sell numbers here: 150114-plan