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This week has started out with some pretty aggressive volatility. As you trade the ranges back and forth there is opportunity in both directions. One of the things you may notice is that a lot of the levels are tested but entries need to be responsive in nature. The machines on Wall Street today dictate what happens at these areas and to be able to play you have to on your best game and have a methodology that allows for you to trust parking a linit order at a location that the market will turn away from. Granted this is not the same market we had in the last great run of 1999-2000. Things have so dynamically changed for even 5 years ago as more guys leave the floor and more machines are put in the closets. THere is no doubt we all see the effect of this on the intraday swings and volatility in this market.

Yesterday violence was breaking out in Turkey, as we go into the summer months it is shaping up to NOT  be a ho hum summer. For those of us that trade on a daily basis that’s a good thing I don’t want to see the volatility go away. It creates wonderful opportunities each and everyday for those of us that have a plan in place to trade from key levels.

Speaking of key levels take a look at the composite for the ES emini. You will notice that since the beginning of 5/3 until yesterday the composite profile most accepted price level is 1626.50. Also notice on the volume profile on the right hand side where the next major volume point is 1655. So the market is beginning to play out in the stage 3 and is giving clear areas to trade to or from. We also know that if the market spent anytime under the 26 level that it most likely could see new lows into the 1590 area.

So imagine this – you have a defined levels in structure to trade from. No guessing or wondering just waiting for the market to tip it’s hands at these areas. This is your world when you are in control of where you want to trade from.  Remember it always starts on the higher time frames and we drill down to work the entries and exits. 1626 will be a key reference anchor for us and will watch how it plays out as a major tipping point for the month of June.

Happy Profiling