Premarket: After that strong selloff on Friday fueled by JPow and the Debt Ceiling BS, we have been trending up all premarket until we hit the prior Yearly High (4208.5) around which we found sellers and came back down. As on 9:00 a.m. we are hovering around the 0pivots. The pivots today are as follows: 0pivot 4205.67; +1pivot 4219.83, +2pivot 4241.42; -1pivot 4184.08, -2pivot 4169.92. The only real levels of interest around where we are at the old yearly high (4208.5) and the new yearly high made Friday at 4227.25. Looking on a more macro view, we are still in an ascending channel on the daily/weekly charts. It's difficult to predict where we move from here, but we are starting above VWAP on the day. If we test stay above VWAP and either test the 0pivot or VWAP and hold with buyers showing up and we are able to break about the 4208.5 previously yearly high, I will look for a pull back to get long. If we sell below 0pivot and VWAP, I will look for a pull-up/retest of VWAP for a short move down to the -1pivot.
Trade 1: This trade was an execution of the premarket plan and continuation of a red move. We had the TICK/ADD/VOLD all moving down off the rejection at the +1 pivot on the ES. We moved below VWAP and found some support around the 0pivot, but could not find buyers to raise the price. I took the trade with a tight stop loss of VWAP (2-3 points) and we had a strong move to the downside. I took my first part off at the premarket low and then let the last one ride a little more. The execution on this trade was pretty good. The only thing I would have done differently in potentially have taken the trade right before 10 a.m. when we had been doing a similar move right at VWAP. It would have gotten me an extra 3-4 points. Either way nice trade.