Big trending day today despite ISM index down --> $420 profits.
5 min Emini Nasdaq 100
Market was undecided for the morning and I refrained from taking a position... However if you observed, stochastic and MACD is slowing edging up.... I entered only when price broke the high established by the morning sessions in a decisive white candlestick.. I longed 1 contract at 2125 and anotther 2 more contracts at 2128.. afterthat, it was just smooth sailing... price action was strong and continued above the green moving averages, although stochastics and MACD did cut the signal lines, DON'T PANIC and start to think about exiting.. price action is more important... do what the market is telling you to do... I became more cautious when price broke down the moving averages....all the way to my blue moving average... I exited at 2134 with profits of $420..
Another signal of weakening trend is the negative divergence of the short-term MACD... Stochastics also started to turn down dramatically... This cautioned me to plan an exit soon.
Fundamentals:
Manufacturing activity continues expanding in the U.S. in September, although at a slower pace than in August, as the latest ISM PMI manufacturing report shows.The ISM manufacturing index of September has fallen to 52.0 from 52.9 in August; the employment index has edged up to 51.7 from 51.3 in August, while the prices index has fallen to 59.0 from 63.0 in August. New orders have decreased to 53.4 from 55.3, and production has declined to 54.6 from 56.1 in August.The only component below the 50 level has been the inventories index, which decreased to 41.6 from 45.4 in August.