Princetontrader Pivot Report November 14, 2016

MARKET VIEW

7:03 am ET  Webcast to follow. As we start a new week it is clear that we are headed into a new phase of the tape that will be much more trader friendly than the summer compression and pre election unpredictability of the markets. This volatility phase should carry through to the inauguration at a minimum. We are currently seeing resistance in the 2170s this opens a retest of the 2150 support area. Should 2150 break then a move back to test the new weekly pivot at 2123.50 opens. Over 2170s would look to test last weeks high at 2180.50 and the all time high 2191s. As we head into today we need to identify whether we are overall making lower highs or higher lows and let the price momentum dictate trades. The focus is the same as always we hit our goal each day and move on. We need to also protect what we have. We did over 130 room handles last week and are over 195 for November. Time to get selective about setups while taking full advantage of this new environment to finish the year and start 2017 strong. See you in the room.

Friday's Post: "Today's range is the 2150-2170 overall range that needs to be decided before the next move on the tape. Subscribers: This has been a fantastic week of trading, Weekly and monthly goals have been made and then some. Don't do anything today that will give them back."

Thursday's Post: "Well you don't see that every day. Just a crazy trading session with a ton of opportunity and a ton of risk. We have popped over the old 2168 range high during the overnight. Bulls will want to convert that area to support and make a run at the 2191.50 all time high. Bears want to hold 2180 and on a hard break of 2156 can retrace price all the way back to 2118-2120. The next few days will be critical. The drop and the pop were pretty standard although much more violent than many (including me) were expecting. The whole process played out in one session. The market now must actually decide how it wants to handle now into the inauguration. Be careful and respect risk. Plenty of volatility for everyone."

Wednesday's Post: "What a wild night. 2150 to 2028.50 limit down. We have rallied 90 handles off the low as we head into the regular session. Please be careful and consider waiting for the market to settle down a little before trading it. We are seeing either a bear market rally that will be sold to a lower low or the start of a V. In either scenario we likely pull back off the regular open. This issue then is whether dip buyers stay strong and start doing higher high on short term time frames. Be safe."

Tuesday's Post: "The band ride has ended in grand fashion. A Sunday night gap up which followed through into a trend up day. Price has paused at the Monthly Pivot (2132 area). Support was found during globex at 2122 (daily mid-band). The key for today will be to see if daily mid band holds as support throughout the day and thereby offer a springboard (if the election cooperates to a higher high. The bears want to get the daily mid-band back on their side. I will be very leery of further upside if we spend the day walking up higher into the final election results tonight. That setup tends to be a sell the news event.Watch monthly pivot and daily mid-band in today's session. They have provided the Globex range and should be a good guide for how regular action wants to trade. (Breakout above 2132/break down below 2122/trade within the range). Have a great day and go vote."

Monday's Post: "The power of the lower band ride could be seen in the magnetic selloff on Friday afternoon. However, that move lower followed by the Sunday gap above the Friday high will very likely end the band ride. This is a "wounded animal" tape, meaning that each side has been nailed over the past 24 hours of trading. First the bulls who were looking beyond 2094 on Friday and now the shorts who were looking much lower headed into this week. This tape is dangerous and unpredictable. This tape will stay that way through Tuesday's election results. Use caution, control size and respect risk."

 

PIVOT TABLE

111416pvt

 

ES CHARTS

Hourly:

111416-hourlyDaily:

As we start a new week it is clear that we are headed into a new phase of the tape that will be much more trader friendly than the summer compression and pre election unpredictability of the markets.  This volatility phase should carry through to the inauguration at a minimum.  We are currently seeing resistance in the 2170s this opens a retest of the 2150 support area.  Should 2150 break then a move back to test the new weekly pivot at 2123.50 opens.  Over 2170s would look to test last weeks high at 2180.50 and the all time high 2191s.  As we head into today we need to identify whether we are overall making lower highs or higher lows and let the price momentum dictate trades.  The focus is the same as always we hit our goal each day and move on.  We need to also protect what we have.  We did over 130 room handles last week and are over 195 for November.  Time to get selective about setups while taking full advantage of this new environment to finish the year and start 2017 strong.  See you in the room.

As we start a new week it is clear that we are headed into a new phase of the tape that will be much more trader friendly than the summer compression and pre election unpredictability of the markets. This volatility phase should carry through to the inauguration at a minimum. We are currently seeing resistance in the 2170s this opens a retest of the 2150 support area. Should 2150 break then a move back to test the new weekly pivot at 2123.50 opens. Over 2170s would look to test last weeks high at 2180.50 and the all time high 2191s. As we head into today we need to identify whether we are overall making lower highs or higher lows and let the price momentum dictate trades. The focus is the same as always we hit our goal each day and move on. We need to also protect what we have. We did over 130 room handles last week and are over 195 for November. Time to get selective about setups while taking full advantage of this new environment to finish the year and start 2017 strong. See you in the room.