Emini Futures Trading Update- 03Jan2017

Hello Folks, the S&P500 Emini futures are at 2242. The futures lost 20 points from day high of 2059 to make day low of 2039.

Trade#1 of Jan 2017 has hit stop loss at 2248. This is our 3rd stop loss of 6 points in this zone of 2250, including the two stops we had in December month So we will have to wait for 2250 to be crossed or broken decisively. All these stop losses will be recovered in one good trade of 20-25 points.

I am looking at 2260 on the S&P500 index. There is a clear long trade above this level. The index went till 2263 today but failed to hold and a 20 point sell off followed. We will get back into the market in a day or two once direction become clear again. There will be tactical trades along the way. The zone for short trades is from below 2240 as mentioned in previous mail today. The futures have bounced back from 2240 multiple times, so we have to see if this level holds.

Traders with 1-2 contracts: There is no immediate trade. Please wait for the next trade specifically for you.

Traders with 5-10 contracts: Here is another tactical trade for you. You can Buy 1-2 contracts at/above 2242 for Target 2252 with Stop 2238. [Update: This tactical trade of 10 points was successfully completely today itself by end of day]

Please Note: The broad view for this month is to be long above 2250 and short below 2240. We will try to create trades using this view. 2252 is acting a key resistance in futures, and 2238 is acting as support.

Background Notes: Jan has been a tough month for markets last 3 years, with S&P500 losing at least 3 percent in Jan 2014, 2015, 2016. Jan is difficult because large investors will do portfolio adjustments and if previous months were good, there is a tendency to become conservative and go into liquid funds. We traders need to be very cautious in Jan. All the best!

Emini Futures Trading Analysis- 26Dec2016

Hello Folks, hope you had a good Xmas weekend.
The Emini futures are currently at 2260. The volumes have been very low, so we will have to see where the direction is with volume pick up. The long trade is still on. A retest of 2070-2080 level is possible this week. 2248-2250 should be the absolute stop loss on long trades. Below 2240, the S&P500 will face high selling pressure and we can see 2200 within a few sessions. Short positions can be taken between 2245 and 2215. In summary, our S&P500 futures strategy is to remain long above 2050 and go short below 2250.


Please Note: If Trump fails to deliver on the promises, then this Trump rally will unwind over the next 6-12 months and we will see 2080 again, which is nearly 200 points correction from current level. Experience says hope rallies often get tested again and again, so we are likely to see 2180-2200 again in 2017. Traders should keep taking profits regularly. All the best!

Emini Futures Trading Analysis- 13Dec2016


Emini S&P500 futures have hit 2270 today, extending past our previously published technical target of 2260. However, selling pressure can rapidly emerge and increase around 2260 level. The futures were running at par with index prices during the early part of the rise from 2200 to 2250. The futures are now running at a discount to index prices, indicating increasing amount of futures selling.

A correction from current levels is possible, and the futures can go down till 2230 without breaking the uptrend. Traders may look for a Sell trade below 2250 for 10-15 point gain.

Another Emini futures trading strategy at current levels is to stay long above 2250, with 2250 has the Stop and take profits at every 10-15 points gain. If you see 5-10 point gap down one of these days, that could also be used for selling with 10-15 points gain.

Overall, there can be no high conviction short selling as long the futures are above 2200. All short trades above 2200 are tactical, only with the aim to gain 10-15 points from the periodic corrections arising due to profit taking in this big rally spanning Nov-Dec 2016.

Emini Futures Trading Analysis- 09Dec2016


S&P500 futures moved up vertically after crossing the resistance at 2213. This threshold level was shared with our subscribers in advance, so that some traders could automatically initiate long positions above 2213 with Stop at 2200 and targets of 2234-2247. So this trading strategy has given about 30 points gain this week.

The key support levels are marked in the attached chart in yellow. They are 2100, 2160, 2180. Above 2200, we are in uncharted territory and

S&P500 futures have hit 2260 today afternoon, which was our technical target for the current upmove from 2180, and this was shared with our subscribers when the futures were at 2230 – to give them an idea of the magnitude of the upmove, so that they could plan their trades and gain maximum number of points from the good rally at hand because such rallies come only 2-3 times in a year.

We did not wait for 2260 to book profit on our long trade. We exited most of our long positions at a pre-defined target of 2247, which was sure to come when the S&P500 index goes to test 2250. Some of our larger traders who trade with 5-10 contracts were able to capture the 50 point gain from 2200 to 2250 with 2-3 contracts, while using the other contracts for trades of 10-20 points, which is the prudent way to do it, because we could not have predicted 5 green days non-stop. Now, we have to let the US Fed give their updates on interest rate policy and take any new trades after Dec 12-13. Thanks.

Emini Futures Trading Update- 09Dec2016

Hello Folks, the S&P500 Emini futures are currently at 2254. The futures have moved from low of 1980 to 2250 this week – that’s 70 points in a week, a very good upmove indeed!

Different traders should have been able to capture different number of points based on the trading strategy recommended to them, but everybody should have made some profit in this upmove.

For example, Small traders with 1-2 contracts were asked to buy the futures at 2234 for target 2247 with stop 2226, and that trade completed within 24 hours, giving 13 points gain. Large traders with 5-10 contracts should have started long positions automatically above 2200 for target 2234 with 2180 as Stop Loss, getting at least 30-35 points gain per contract between 2200 and 2247.

In fact, a similar long trade was suggested as a Bonus Trade on Nov 22, 2016 and hence available to all our website visitors for free. Please see the previous post titled: S&P500 Emini Futures Hit 2200 Today!
Nov 22, 2016 Bonus Trade: Traders can remain long above 2200 for target 2220-2230 and 2190 as stop loss.

What happens next? After 70 point non-stop upmove, there can be some pause or profit booking. The Technical target for this upmove is 2260, which is just 6 points away from current price of 2254. For us, there is no new trade currently. There is a sell signal on the hourly charts with potential target of 2232, which could come next week after the US Fed Meeting updates on Interest Rate policy, when markets will try to adjust to the news and volatility can come back. So we will wait and watch for the next opportunity.Thanks.