RTY Trading Testbed [Record = 14 for 64 | -3.70pts | -$185.00 per contract]
 

Just gonna post some RTY trades here and see what happens

THIS THREAD IS FOR EDUCATIONAL PURPOSES ONLY - NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITIES OR FUTURES CONTRACTS

LONG @ 1739.80 stop @ 1710.50

still holding position...currently @1751

1760 and making highs as I type this...market doesn't look like it's going to lose upward momentum for a while...I guess maybe J&J earnings might move something tomorrow morning?

If we push past Friday's high tonight (1765)...I might move the stop up....might check in one more time before I go to sleep...lol

And just like that, it blew past Friday's high...

moving stop to 1727.10

Pop quiz...when was the last time you remember futures being up almost 2% overnight after an up regular session of 2%?

It's been a while...I can't remember the last time the overnight was up this much around midnight...something is driving this market tonight....

Well...here we are 7 hours later and essentially in the same place as we left last night...although it did go through a dip overnight and now back on the upswing.

If it can make a new high here, that would be nice, and I will probably move my stop again if it does.

It looks to me like we still have a lot of potential momentum remaining to the upside for today.

Don't let me forget...Netflix earnings after the bell...will want to really tighten things up if I am still holding this long after the bell...

Momentum MIGHT be slowing down just a tad...I think the 9:30 open will be telling as to how much energy this move has left in the short term

RTY showing a lot of relative strength vs. ES on the open...setting new highs while ES just stands still basically...interesting...

And just as I typed that, RTY starts coming down dramatically...but is now stabilizing...market might just be running out of steam? Lots of profit taking on the open?

Still making new highs on RTY...so I think we're good for now...currently at 1792

Stop moved to 1756.50...not liking what I am seeing at the moment

Stopped out at 1756.50 for a gain of 16.7 points on trade #1.

I am still debating how to manage my exists with these trades. I took the safe route with this one and moved the stop up. But that might change in the future.

Attachment 32462Imo, overnight futures and US market pricing when markets are open are (still) very much driven by price movement in the dollar.

Clickable thumbnails below:

Daily Chart BBDXY (Bloomberg Spot Dollar)

Daily Chart SPY

Fwiw, my takeaway:

During this current market cycle price movement in the dollar is shortly followed by proportional price movement of US markets in the opposite direction a very high percentage of the time.

Sometimes market pricing (short term) becomes disconnected from movement in the dollar.

That was the case this morning after market open. The dollar was rising but the SPX was (still) holding onto its gains.

When I saw this I decided to add a few more SPY Nov252022 320 puts at 1.60 to the trade I posted in the other thread (clickable thumbnail below.)


-jp

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My alternative method of exiting my RTY trades would involve setting the initial stop as I did above...and exiting based on time....not moving the stop up.

So, I would probably be looking to get out sometime tonight...close to midnight...it will be interesting to see where price is around that point (assuming the initial stop theoretically holds).