Monday's Value Slides

This morning, London time, was one of the quietest in the stock indexes. The open in the DAX had a bit of beef that failed very fast. It then drifted downwards for the rest of the morning. Friday's failure of the ES at around the 1405.00 was fairly important and was a sign of weakness. I'm running several option strategies on the U.S. indices. Friday's ES weekly call options that I was short expired worthless and I intend entering some more RUT option butterflies that will benefit if the market now pulls back.


Today's Market Profile chart on the DAX shows this weakness. Price opened above value and then developed value inside yesterday's value area. Even on a day trade and on a quiet day like this, there is a way to trade to make money. Having different weapons in your arsenal to trade these markets in transition is important for maintaining CP.


As you can see on the chart, the width of the TPOs shows accepted value inside Friday's VA. Then it was only a matter of time for it to drop enough to make a profit, start scaling out and trail a stop on any balance.