I had another record day today and bagged my best trade ever by catching a 344 pip x 2 cars (over $4k) on 6B. Fortunately, I was not even tempted to take any longs last night with the repeating P pattern on the Market Profile. See below for a 2 week composite that bring in some key areas below. I was pretty sure that we wouldn’t break 6240 today but when we do we could be looking at a significant continuation move down. I will post more analysis of these key areas over the weekend.

I traded 6E, mostly on the short side, for most of the day yesterday and managed my best day for the year so far (4.4%). It is worth noting that this 30 minute chart is indicative of a continuation move upward.  The “P” pattern formed on the Market Profile for 10/21 shows price exhaustion and normally a good place for trade placement for a rotation back to the mean. But in this case we need to exercise caution with shorts due to the fact we had a repeat of the “P” pattern on 10/22 (today) on lesser volume.

6E Monthly Profile Chart plotting price value area in red on histograms and POC lines in green. The cumulative yearly volumes are plotted to the left of each year in thin blue line.

Daily 6E Chart showing key S/R areas and 200EMA.

With regards to the monthly ES Market Profile we have rotated around the 1061.5 area forming a recent high volume node with a September POC 0f 1059.25 and a running October POC of 1061.5. We are now trading at least 50 points lower than last years lower end of yearly value area. That being said going into tomorrow, a low volume holiday, I will be looking for shorts and a rotation down before rotating up as we will need significant buying conviction and volume to rotate up from this area. Last years POC and high volume node is 1275.25.