Monday trading on the Dax and I have had a whopping 4 contracts traded for the morning session.

One important area to watch is the stock market opening one hour after the futures open.

This is where we often get fast moves and shakeouts as occurred today.

I took an initial position on a retracement of price to 5720. (Minor support)

Then I anticipated a shakeout as the underlying stock market opened and took a 2nd position after price pushed up from its lows.

The shakeout pushed price just below the first pullback setting up a pump fake with trend.

I scalped out the first and let the second position move to initial resistance at 5745.

I left some on the table and should of had an extra contract on but was happy with the 20+ pt move.

I also managed a larger position long on the evening session of the Aussie SPI which helped my equity return.

(sometimes the SPI price movement can lag trending moves which provides opportunity)

Dax shake.jpg (95.03 kb)

Every now and then I run out of ideas to write about in the blog and it starts to get repetitive.

The SPi had some good setups today with an initial expansion bar at 10:25 with the trend.

New highs were made above 4400 but the momentum died with the candle tail and the next reversal expansion candle down.

The lower rounded high set up the Tap Pattern structure with the expansion bar down providing potential signals.

At 4370 a reversal setup bar showed selling drying up and the market retested 4390 highs.

Down price went again with strong momentum as world indicies sold off.

SPI 19-8.jpg (125.60 kb)