Dow Jones Emini Futures Day Trading Video Journal

Day Trading Dow Jones Emini Futures with our Black Box Breakout Indicator

Watch the Video trading journal below for great day trade for Dow Jones Emini Futures on 4th Jan 2019. Jerry takes you through a simple trade using our Black Box Breakout Indicator.

On Thursday 3rd January, we had a pretty good sell off. We closed near the lows of the day in the opening session. During the after hour session for the Dow Jones emini futures, we actually found a new low below the previous day’s low. However some good Chinese news came out and started driving the market back upwards. And you can see that we started pretty much driving from that point forward coming into the non-farm payrolls time period. Non-Farm payrolls is about 08:30 East Coast time and that’s right around where these multiple time frame dots turned blue.

The news was extremely strong, about 2x the expectation on payrolls indicating the US economy was strong. We had a little bit of dip in Dow Jones emini futures, but right around that point the bonds starting selling off pretty hard indicating that was probably going to be a bullish risk on day. Therefore this day was setting up to be pretty bullish. We were going to open with a big gap on  from the Closing the prior day. Some 300 points to the upside and the inventory overnight was going to be long everybody was buying at that point.

Jerome Powell Ben Bernanke and Janet Yellen

Later in the day also Jerome Powell, Ben Bernanke and Janet Yellen were having a panel discussion. Given how Powell’s last speech at the rate raise in December impacted the markets negatively. I thought was that he probably was going to back off from that a little bit and maybe be more data dependent.

Inevitably that’s what happened. But really the expectation going into the day with a big gap up was it probably would hold it and continue to seek prices higher. Everything seemed to give that indication. We had the overnight reversal on the 30 minute time-frame. That is our anchor time frame for short term trading that we’re using. We did go from below the 30 minute cloud backup through it to green.

Dow Jones Emini Futures Trade Setup

All the time frames started getting aligned at about 2 o’clock in the morning, coming into European Open to help U.S. market go forward. Then a little bit of a pullback at the 08:30 non-farm payrolls. But the market kind of absorbed that pretty strongly. As we came into the 9:30 open, my thought was that we might get continued short squeeze going into the open. So I’m looking for the potential of a scalping trade. I had some trade logic for the day going into the session as how I was going to look at it. Therefore being careful on getting in and out of a trade especially near the open. In this particular case we did have a signal before the U.S. market opened on Dow Jones Emini Futures

I generally don’t take those trades because the open can be pretty whippy, especially when you’ve got some overnight inventory long. So inevitably I didn’t take this initial signal, but I did look at the next and took this one here. So at the open we were pretty bullish and didn’t really pull back, even into the cloud. The techs opened up extremely high. The bonds were continuing to sell off.

Everything looked like it had lots of rocket fuel to the upside. So when this next signals was printed, I did set A TRADE ENTRY for a couple of Dow Jones Emini contracts. I generally don’t trade on a Friday like this. But I had a number of conditions that I thought might be favorable for a quick scalping long. Inevitably the next three minute candle took took me into the trade.

What Happened

It didn’t really even come back towards the cloud we ended up at the 100 percent times risk profit line. We did make a close above that line so I moved my stop up to break even. We came down on the next candle, didn’t break it and came up above the hundred percent line. So we hit the 200 percent line and I took my trade off.

The other reason I started looking at how questionable the trade was going to go. The ticks were starting to make new lows. Tthe ticks are showing the amount of stocks being sold on the bid tick versus buying on the ask. You can see that it’s starting to reach a little bit lower and a bit lower, indicating that there is some selling into the open. It didn’t really make that much difference. We did end up getting to a new low here and we did have a pullback to the cloud.

For those that trade our Cloud, you know you get a close inside the cloud. If you’re still thinking long for the day, you could put an entry above the cloud with stop below the cloud. In this case that would’ve been another very successful trade and in a six minute time-frame. Even one contract on this one, should you have taken a trade, would have been another very highly successful trade. Not one that I did. Again I don’t trade a lot on Fridays for futures, so really all I ended up doing was grabbing my points from this trade and ending the day.

But there was a couple of pretty good trades here using the MTF dot cloud and the black box breakout indicator for the YM contract last Friday.