Free Samples

Peter’s Premarket Perspective – Wednesday September 11, 2019

Peter Reznicek
Peter Reznicek
Co-founder/Head Trader, Peter's Premarket Perspective, Weekly Options advisory Email Peter Reznicek
Share on Facebook Share on Twitter Share on Google+ Share on Linkedin

The Market Profile value areas and ShadowTrader Pivots for /ESU19 and /NQU19 Futures are posted free every morning

in the ShadowTrader Swing Trader newsletter.

premarket
WindoTrader 702-800-4628 Speak with Terry about the ShadowTrader discount
  Key Levels for Today
2990.25 RTH Balance Area High
2981.25 Prominent TPO POC from 9/6
2957.25 New Top of Gap / Balance Area low

 

Yesterday’s action gave us a good amount of M.G.I. to add to our narrative, mostly in the form of a look below and fail which took prices into the gap but still left a large portion of it unfilled. As always pay attention to what should happen and then note when the opposite happens. What should have happened is that new sellers should have been attracted once the top of the gap was pierced. It was like a party that started off pretty good and then some fool said “Let’s play charades!” and it fizzled quickly from there.

Which brings us to current action overnight which is a small true gap higher on overnight inventory that is almost perfectly balanced. Beyond that, the open is slated to be in the larger balance area, in fact right in the meat of it where the prominent POC printed from three sessions ago. This means that if you are an /ES cowboy (or cowgirl) you will probably want to trade later rather than earlier as there is no “shock and awe” to overnight inventory and the open is smack dab in the middle of the larger balance area. I honestly cannot stress that last sentence enough. I know from my own experience and thousands of emails from traders that one of the things that is most detrimental is thinking that just because you have heard that familiar 5 tone bell ringing, there must be something to do and it must be done now. Pavlov would be proud, and there will probably be responsive setups later in the morning if we remain within the larger balance area.

In the bigger picture the balance area is still intact and the balance area high and (new) top of the gap are still our reference points. Anything between is noise.

  Scenarios

  • Balance rules are still in play. There could be some push/pull today as the volume POC never migrated higher with price yesterday closing at the high, against the context of some shorts probably trapped from the look below and fail. Given those two nuances, I put more weight on the trapped sellers and would continue to favor longs.
  • As usual, only a breach of the top of the gap which is the new balance area low would bring upon potential for change.

 

Recording of the market profile Q&A from yesterday…

ShadowTrader Tape Reader

Provides an essential edge for successful day trading in both stocks and futures contracts. A thinkorswim add on study that can actually “read the tape” and tell you how much is being traded at bid vs offer.

Learn More
Think or Swim Logo

Don’t Have a TD Ameritrade Account?

Do you put on a blindfold when you drive too? Open an account with TD Ameritrade today and get everything ShadowTrader has to offer including the live SquawkBox and more!

Open An Account

TD Ameritrade, Inc. and Shadow Trader Technologies LLC are separate, unaffiliated companies and are not responsible for each other’s services and products

Related Articles