Monday Dec 22: Live ES & MES Trade Prep for Our S&P Futures Trading Room

How To Trade MES Micros

Monday December 22, 2025

In Monday’s AM Briefing, Micros Trader emphasized the critical importance of using a hard stop loss on every trade to protect against external disruptions such as internet failure or sudden market events. The discussion formed part of a larger trade plan framework and laid out specific protocols for defining, managing, and adjusting stop losses. A separate technical analysis of current market conditions revealed an overwhelmingly bullish posture, supported by seven confirming indicators. While long entries are currently high-risk due to location, short positions are considered even riskier unless a specific re-entry setup presents itself.
📖 AM Briefing: Holiday Week Trading & Stop Loss Mastery

Welcome to the shortened Christmas week! George kicks off Monday morning covering essential stop loss protocols from Section 15 of the Trade Plan Builder, analyzes the bullish market structure heading into the holidays, and reminds us why having hard stops in place isn't about being a bad trader—it's about protecting yourself when your internet goes out mid-trade.

  1. This Week's Scripture - Joshua 1:8: "The book of instruction must not depart from your mouth. You are to recite it day and night so that you may carefully observe everything written in it. So then you will prosper and succeed in whatever you do." Perfect timing as we work through the Trade Plan Builder—your instruction book for trading success.
  2. Trade Plan Builder Section 15 - Stop Loss Mandate: A stop loss must ALWAYS be in place. Not because you're a horrible trader, but because your internet could go out, unexpected news could drop, a whale could dump their position, or your mouse could die. Every entry—even picture perfect ones—carries the risk of being a full loser due to external events beyond your control. Hard stops are recommended over mental stops for this exact reason.
  3. Stop Loss Strategy Questions to Answer: Where do you place stops on each core strategy setup? When do you move your stop to breakeven—after X ticks in your favor? How do you manage for a half loss (move stop halfway or close half your contracts)? Do you ever move your stop further away? Only if you've scaled out half your position and still haven't exceeded your maximum dollar risk. Define your exit protocols for time stops, news events, and changing market structure.
  4. Market Structure - Bulls in Complete Control: We've established a clear uptrend with multiple backtests of the trend line before breaking higher. Battle Plan Trade #2 from last week is still active—if you're long from five points under those key lows, you're still holding. The range that's been critical for weeks continues to play a major role, and Friday's defense of the bottom of that range followed by Sunday's gap up signals continuation to the upside.
  5. Range Rules Dominate: The bull-bear line sits at 6068-6067, which is the bottom of the current range—this is where bulls must maintain control. We gapped up Sunday and spent hours consolidating, now working toward the top of the range. First time touching the top? Probably won't break through immediately. If you're going to short it, wait for it to poke through the opposite side so you get the gift of breakeven when it bounces back.
  6. Bull-Bear Scorecard - 100% Bulls: Overnight trend line: bulls. Session stacking: bulls. VWAP: bulls. Overnight halfback: bulls. Yesterday's range: bulls. Indices: bulls. Bull-bear line: bulls. Guys, it is ALL bulls right now. Don't fight this tape.
  7. Holiday Week Trading Schedule: Trading tomorrow (Tuesday) morning with live room 15 minutes before the bell. Wednesday and Thursday—nothing scheduled for Christmas. Friday is TBD, will update the group. Most traders taking the week off, which historically tends to make this an "up up and away" week with lighter volume.
  8. New Member Welcome: If you just became a member, George will personally ensure you get everything promised and get you into the group. Check your email for access details. The Trade Plan Builder is a member benefit with 22 total sections—we're currently working through Section 15 on stop loss protocols.
  9. Trading Wisdom - Keep Your Powder Dry: The goal of every stop loss, every risk management rule, every exit protocol is simple: keep your powder dry so you can trade another day. Define where you're wrong before you enter. Protect the downside. Enter every trade knowing that unexpected events can turn a picture-perfect setup into a full loser, and that's okay—as long as you're still around to take the next trade.
  10. Get Tomorrow's Trades Tonight: Visit microtrader.com and click battle to access your battle plan. Live trading session tomorrow 15 minutes before the open—see you there!
☀️ AM BRIEFING

Opening Remarks

This AM Briefing covers two major themes that are central to both disciplined trading and current market posture. First, the non-negotiable necessity of using a stop loss. Second, a bullish market outlook supported by technical data from multiple timeframes and a seven-factor Bull/Bear Scorecard.

The Mandate and Mechanics of the Stop Loss

Micros Trader emphasizes that using a stop loss is a mandatory rule in the trading plan. This isn't a reflection of trader skill or experience but rather a safeguard against uncontrollable and unpredictable external events. It's about protecting your capital so you can continue trading tomorrow.

The discussion is part of a broader 22-section trade plan builder, and this particular topic is covered in Section 15. The message is crystal clear: every trade must have a stop loss in place before entry.

Why a Stop Loss Is Non-Negotiable

  • Catastrophic Equipment or Connectivity Failures: You could lose internet access, your screen might freeze, or your mouse might stop working—all of which can prevent you from exiting a trade manually.
  • Catastrophic Market Moves: Markets can react violently to unexpected events, such as a high-impact news release or a massive sell-off by a global institution. A tweet or geopolitical headline can shift the entire market in seconds.
  • Inherent Risk in Every Setup: Even the most picture-perfect trade setup carries risk. A stop loss is your protection when things go wrong, not a sign that your analysis was flawed.

Essay Format Questions

  1. What is your default stop loss protocol for each strategy?
  2. Have you defined when and how you move to breakeven or exit early?

Key Questions for Your Stop Loss Protocol

  • Stop Placement: Where will the stop be placed for each core strategy? This defines when the trade is considered invalid.
  • Stop Type: Always use hard stops—not mental ones—to safeguard against loss of control due to tech issues.
  • Moving to Breakeven: Under what conditions will the stop be adjusted to breakeven? This could be after a move of 6–8 points or once a key structure level is defended.
  • Managing for a Half Loss: If a trade starts to deteriorate despite a good location, consider:
    1. Moving the stop halfway back to the entry to reduce risk.
    2. Cutting the position size by half to reduce exposure.
  • Moving a Stop Further Away: This is strongly discouraged. The only exception is if size has already been reduced (e.g., from 10 to 5 contracts), and the overall risk stays within defined limits.
  • Premature Exit Conditions: Exit strategies can also be triggered before the stop is hit, such as:
    - Time-based exits (e.g., closing before the New York lunch session).
    - Event-based exits (e.g., major news on deck).
    - Structural changes (e.g., sudden appearance of massive candles or a spike in ATR).

Current Market Analysis and Strategic Outlook

Micros Trader then shifts focus to analyzing the current market conditions. The market is showing signs of strong bullish momentum during what is typically a low-volume holiday week. Historically, this week often trends higher.

Technical and Range Analysis

  • The prior trendline has been broken, back-tested twice, and replaced with a new, upward-sloping trendline.
  • A significant historical range is acting as a technical anchor. Price has tested and defended the lower boundary multiple times.
  • The market then gapped up at Sunday’s open and is now nearing the top of that same range.

Bull/Bear Scorecard: All Bulls

  • Overnight trend line
  • Session stacking
  • VWAP guarantee
  • Overnight halfback
  • Yesterday’s range
  • Indices alignment
  • Bull/Bear Line

The conclusion: “Guys, it is all bulls.” The most important technical level to monitor is the 68, 67 price zone. Bulls want to maintain control above this level.

Price is approaching the 68, 67 Bull/Bear zone — caution on fresh longs and monitor structure closely.

Strategic Outlook and Trade Scenarios

  • Longs: The market is now in the upper part of the range, which is considered a poor location for fresh long entries. Risk/reward is not favorable.
  • Shorts: Shorting is extremely risky right now. The only viable tactic, if a trader insists on shorting, is to wait for price to break above the range and then return back into it—what Micros Trader calls “coming in from the other side.”
  • This can offer an early opportunity to move your stop to breakeven.
📚 RESOURCES FOR FUTURES TRADERS

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