ES Rollover

The E-mini contract is divided into four quarters; Mar (H), Jun (M), Sept (U), Dec (Z)]. On the 2nd Thursday of these month's the contract "rolls over" from old to new. This is a transitional period that can provide big swings and high volatility as the market makers adjust positions and play the gap between contracts.

Transition into the new contract by adjusting charts, be aware of previous days "old" contract HH/LL as well as the "new" Globex open from Wednesday 1630 and the overnight HH/LL. There are many transitional considerations to be aware of during the day before and, day of, rollover day. Be prepared and plan for it and we can trade like any other day.

Using EWS has helped take the mystery out of these transitional periods as well as being able to plan better for the trading day ahead.

Trade Well !

Wednesday Log - Get Some Z's

Participated in the AM move by going long from 23's. Saw support in 22's so hopped onboard the move with 2 pt stop. Scaled out on the way up to 29's. Felt good about the trade although stopped out on runner by one tick. Was targeting runner for FF T1 but did not get back in.
Result: +9.0

Tried a low risk divergence short later during lunch session but stopped out above AM high. Sto and volume were divergent so good clue to downward move coming. Maybe (probably) got in too early with too tight of stop (stop set one tick above recent high). Ultimately a 2.25 stop would have worked from my entry but that would have been too much risk for the trade idea. I wasn't going to risk more as I find my legs not to over trade which I must say I've been much more in control with. Result: -0.75

Thursday is "rollover day" where we transition from the ESU9 to the ESZ9 contract. Expect volatility and big swings as the market makers move and groove. So don't forget to transition to the new contract on Thursday. Set your charts and orders by getting some 'Z's!

Trade Well !