If the market takes Friday's job report as an excuse to sell off, I am looking for ES to hit the mid 1460's. At that level I would be looking to buy. I'll look to buy some at around 1470, and then around 65, and then 60.
Not that it will get there Friday, but if not Friday, then soon thereafter.
Why the mid-1460's (actually 1464.50)?
Measured move. A book from the mid-70's called it the Trident Trading Technique, but it's an old favorite from decades back that works great in volatile markets (HUGE bump in VIX Thursday--yes, volatility is back!).
The high from a few weeks back was 1586.75, and the low last week was 1492.50. The high Wednesday was 1558.75, and we all know what happened Thursday.
1492.50 from 1586.75 is 94.25. Subtract that from Wednesday's high, and you get 1464.50.
Of course, if the jobs report is interpreted by the powers that be in a positive light, look to go the other way. No positions in ES right now (mostly only daytrade right now).
When I say "buy", btw, I mean adding bull delta. That can come in the form of long deep itm calls, short bull straddles, or long ES contracts. It depends on the situation (i.e. implied volatility). But I'll be buying something, for sure.
