S&P500 has been correcting whole of last week and has successfully tested key support of 1990 in the process, and rebounded from there. Very good. Meanwhile, Crude Oil has stabilized and Eurozone is likely to do something positive/constructive for their economy going forward. Today’s correction is a buying opportunity, because there is sufficient fear prevailing in the US market to warrant fresh buying of the S&P500 Emini Futures. Here are the S&P500 index levels for this positional trade which may play out over next 3-5 days.
- Buy @ Current Price = 2010
- Target = 2055 // Stop Loss = 1990
- Risk Reward Ratio = 45 points reward / 20 points risk = Good.
Please Note: This single trade can give us 45 points, which is the average trading gain of some months. Hence its worth going after with a moderate position, i.e., not full loading, but sufficient loading to make the target 45 points profit material enough to make Jan 2015 a great month to start the new year. As always, for any questions, please contact us.