Trading Dow Futures: Aug. 9, 2016

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$YM-Trading The Dow Jones Emini Futures contract for September ’16. At 7:40 am (CST) Slow Stochastics (5,3) crossed up below its 20 as the market moved below its lower Bollinger Band and then reversed back to the upside near 18,475. The market attempted to rally for about 20 minutes before reversing and heading back to its lower Band. At 8:30 the market again reverses at the 18,475 level moving the Stochastic to crossup above its 20 with MACD (8,17,9) confirming its uptrend.

At approximately 10:20 Stochastics crosses down above its 80 as the market starts to stall near its upper Band near 18,520. For the next 40 minutes the market falls but reverses again to the upside and attempts to vault the 18,520 level but this time is stopped around 18,518 as Stochastics crosses down below its 60 as MACD seems to agree that there’s no place to go but down. A crafty trader would have realized about 95 points. Many brokers now offer day trading margin of $500.00 per contract. With each one point move valued at $5.00 that would have been $475.00.