Emini Day Trading Diary

5 min Emini Nasdaq 100

market gapped up today only to come down again in a beautiful triple top coupled with stochastics and MACD cut down. Notice that Short-term MACD cut the signal line first and then Mid-term MACD cut the signal line too confirming the trade...

I shorted 1 contract at 2057 and another 2 more contracts at 2040.. Notice how beautifully a trendline could be drawn? I kept the position all the way until stochastics broke up from the oversold region and Short-term MACD cut the signal line, this was coupled with price cutting the trend line... I exited at 2027 with profits of $1120.

Fundamentals:
The minutes present relatively little in the way of new developments, but it remains relatively clear that Fed officials were reluctant to cut rates aggressively as of their previous meeting. This may change, however, as credit and lending market conditions continue to worsen and risks to growth intensify. Markets have responded by sending short-term market yields lower in the wake of the result, but it is interesting to note that Fed Funds Futures have pulled back rate cut expectations through the Fed's December 11 meeting. Traders remain relatively indecisive following the release, and it seems as though the Fed may face an uphill battle ahead of their upcoming rate decision.

There was little reaction to news that construction of new homes and apartments rebounded 3 percent in October, the largest gain in eight months. The report was not viewed as a sign that the badly wounded housing sector has begun a turnaround because permits for new construction plunged a full 6.6 percent, foreshadowing slower building ahead.
"Permits matter much more than starts because they are less affected by the weather. October was very warm relative to norms across the country as a whole, so unadjusted activity fell less than usual, generating the rise in adjusted starts," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.