November 1st - Breakout Trade in EMini SP Futures

Here is the Breakout Trade in EMini SP Futures

The EMini S&P, NASDAQ, Dow and Russell all had inside days on Monday, and the NASDAQ and Russell had narrow range days as well. The breakout setup told us to look for a strong move in one direction today, and we would look for a trade to take advantage of this.

Today was a reminder to not overthink trading. As today was day one of an FOMC meeting, I assumed the odds of a breakout move were lower than normal, as is often the case in the session before their announcement. In hindsight, given that the Fed is expected to not move ahead of the Presidential election, the Fed meeting wasn’t the caution signal it normally is.