CME trade ideas
CME prepare to Long, double bottom updated planReplace yesterday's CME plan by this.
Existing condition:
1. Weekly demand zone confirmed
2. 60 min Chart double bottom formed
Plan A: If open near today's close
Buy below 142
Stop: 131
target: 185
Risk/reward=1:4
Plan B: If open Gap up (G1) break trendline
Buy at open (Better under 150)
Stop: 143 -- If it is breakaway Gap, it should not pull back under the trendline.
target: 185
Risk/reward=1:5
This stock is not good in Option: Bid/ask too big.
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
Sum of my ideas: 1 winner, 1 loser, 4 active, 8 cancelled, 3 pending for condition, 1 analysis only.
CME - Bullish on push above the 618CME - Bullish on push above the 618
CME - Bullish on push above the 618 @187.72
I will be buying July or August CALLS this am.
I will add to my position on a drop to lower band of the downtrend regression channel @172-170 if needed.
1st Target = 786fib @ 202
2nd Target = 222
This content is for informational and educational purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
CME Upside Wedge Breakout 1) Bullish breakout from wedge that began forming Sep 19
2) Convergence of 10 EMA, 20 EMA and 50 MA with price consolidating above. Bullish divergence beginning 1.7.20 with 10 EMA crossing above 20 EMA, and 20 EMA above 50 MA
3) 50/200 MA cross June 2019 with a recent pullback in price to 200 MA
4) RSI trendline breakout with support on EMA (using a 15 period with 60 EMA)
Long @ 207.86
CME prepare to Long, double bottom formedExisting condition:
1. Weekly demand zone confirmed
2. 60 min Chart double bottom formed
Buy above 158 and below 162
Stop: 155
target: 185
Risk/reward=1:3
This stock is not good in Option: Bid/ask too big.
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
Sum of my ideas: 1 winner, 1 loser, 1 active, 7 cancelled, 4 pending for condition, 1 analysis only.
Buy CME as hedge to volatilityCME tested its 200d MA and could represent a buying opportunity. We can also see some significant volume was exchanged b/w 200-210.
Moreover the CME usually benefits in times of hightened volatility. Given the broad market parabolic move, a hedge against the volatility is always welcome.
How brokers provide zero commission trading? You've probably heard of many zero commission trading platforms being established.
Robinhood is probably the most well known one, actually.
Historically, brokers have made their money by facilitating trades in the market between buyers and sellers and collected a fee for their extremely hard work...
Since markets have become larger, with greater trading volume and more participants, commissions per trade have fallen drastically, and the industry has had to change for your poor broker to earn a living.
With the rise of the smartphone, this has led to brokers being able to target a new type of trader...
This trader tends to be less informed than a professional...
Trading off a phone...
A lack of experience...
And more of a gambling mentality rather than understanding what is truly driving markets.
Firms have realised that.
'Commission free' is a marketing tool, and a very good one.
See, what is happening now is that market makers and dealers - and by extension, exchanges - are willing to pay brokers for their uninformed clients' order flow.
High frequency trading firms, such as Citadel, Apex, Renaissance, Virtu and DRW conduct market making on extremely low timeframes, providing liquidity to exchanges - that's their primary goal - and exchanges pay them rebates based on volume for doing so - note the chart of the CME Group above.
Their share price has increased massively since high frequency trading (market making) has driven 'liquidity' to the exchange.
Since their business is focused around volume, they welcome HFTs providing liquidity and therefore do not mind paying them volume based rebates - HFTs are kind of like introducing brokers.
But what's a market maker?
Market makers are delta neutral.
They do not necessarily care about the direction of a market, they simply want to sell higher at the bid and buy at a lower offer, thus capturing the 'spread' (the difference between the bid and the offer).
By paying brokers for the uninformed flow, this means that they believe they can capture asset misvaluations, and therefore turn a profit.
And it's very lucrative business.
Robinhood recently got fined for not routing orders adequately to allow for best execution for clients.
The adverse selection that they committed is an example of how a client can be at detriment.
However, it isn't necessarily bad to trade with a zero commission broker, since your explicit costs can be low (although implicit - the costs you don't see - could be higher and likely are).
What matters massively is their execution policy and whether you are being filled at the bid or offer that the market will allow you, or if you're receiving the price that the broker wishes you to get as part of their routing relationships with market makers.
The former is good, the latter is bad!
I hope that's cleared up a bit for you...
Chicago Mercantile Exchange " Bell Curve Parabolic "The Chicago Mercantile Exchange,(CME)
the leading futures and options trading exchange in the United States
has seen it's stock rise 500%,...
during the last 7 years, from 40 in 2012, to a Close of 205.96 on 12/6/19
The stock as seen with the 3 Bar Indicator is currently in a "parabolic bell curve" advance,
that leaves very little margin for error on the downside.
You will note by the stock chart of CME that a stock in this kind of advance,corrects very little along the way.
CME is "anticipatory in nature, so it is always trading 6-9 months out in anticipation
and it continues to reinforce the strength, of the continuing bull market for stocks.
Keeping in mind that a stock in a parabolic advance can go a lot,lot further than most expect.
Traders should watch the $200 level in CME for important Support.
An very bullish upside target for CME to $400 a share,should not be ruled out,
due to the parabolic nature, of the 7 year ongoing advance
CME Last 205.96
THE_UNWIND
12/9/19
NEW YORK