A Look at the Structures on Futures

Since we’ve gotten a poor reaction to the CPI data, let’s review some of the structures we can see on futures.

(This is a worst-case scenario, if we don’t get a reversal sooner, and we might.)

We have this down channel (in red) and we’re in this large falling broadening pattern (in green). We have the COVID high below, and we can use the H&S pattern we’re in to develop an additional target that yields us the orange box:

ES

Zoomed in a bit it looks like this:

ES

We may not go there in a straight line, if we go there at all. It’s also possible for us to bottom sooner. My intentions on the open are to roll down my put hedges (which, if we open here, will now be ITM) for a sizable net credit. And I will keep my longs because they still have enough time that I may be able to average them down and catch a strong bounce somewhere between here and the orange box.


Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.


One thought on “A Look at the Structures on Futures”

Leave a Reply

Your email address will not be published. Required fields are marked *