The Bulls Are In Control Of U.S. Equities: Late Session Trading Plan

Posted Monday, September 11, 2017 by
Shain Vernier • 2 min read

The bulls are in complete control of the U.S. equities indices. At the moment the DJIA and S&P 500 are both up in the neighborhood of 1%. Much of the rally is being attributed to the sudden weakening of Hurricane Irma and the failure of North Korea to ratchet up tensions over the weekend.

Equities traders have moved back into riskier assets with a vengeance in response to the current news cycle. Prominent social trading platforms such as etoro can be incredibly valuable when attempting to gauge market sentiment and profit from directional price action.


December E-Mini S&P 500 Futures

It can be a challenge to get in on a trending market in the midst of a pronounced move. Most of the time premium trade locations are already gone and all that is left is scraps. But, therein lies the beauty of active trading: a great setup is always right around the corner.


ES Daily ChartDecember E-mini S&P Futures, Daily Chart


A few key aspects of this market:

  • August’s high of 2486.25

  • Gap up on open, intraday trend day up

  • Upper Bollinger Band of 2482.50

As I write this, December’s Emini S&P 500 futures have traded over August’s high and made a new all-time high. Today’s rally is a bit surprising in that we are seeing a 60/40 volume split between the September and December contracts.

Trade Idea: It is going to be tough to get long during today’s U.S. session. The premium long entries are gone, and the train has left the station. However, today’s close will give us a trade setup for tomorrow’s session.

I expect to see a retracement for the S&Ps into today’s range either late today or during the overnight hours. A sale underneath intraday compression on the 1 hour or 4-hour time frame with a stop above today’s high may be a great way to grab a few ticks during the U.S. overnight.

As always, trade smart and watch that risk management!

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