Emini Futures Trading Analysis- 03Mar2020


Hello Folks, the S&P500 futures are currently at 3076.00
Today’s Range (so far): 3024.25 – 3135.50

Every day is a 100+ point day in range these days!
The futures moving up and down 50 points within 30 minutes- very high volatility.

The Optional Trade given yesterday (long from 2950 to 3050) hit its target of 3050 yesterday itself, giving 100 points gain. A few traders also did the previous Optional Trade during pre-market hours (with 50 points Stop loss at 2950) and for them the net gain would be 50 points. For other traders, who took just the Optional Trade during the day time, their gain was 100 points.

So it was worth taking a follow-on trade at 2950 despite getting hit with a Stop loss, because 3050 target was reliable (200 day SMA retest), and it came within a 24 hours of reversal from lower levels.

Early today morning, with futures around 3060, I posted this on Twitter.

“#SP500 futures 200 day moving avg is at 3056, which was the immediate target from deep low levels of 2850-2900 and that was hit yesterday. Today will be testing of 3050-3060 level. 2950-2980 should provide support. Next upside target 3130.”

That target was hit 2 hours back. While 3130 was visible as a target, it could not be easily packaged into a trade. That’s why I didn’t send a new Optional Trade.

Main news of today is this:
US Fed announced 50 bps rate cut, to help the US economy during next few months, which will also support the efforts of other Central Banks.

The futures shot up will 3135 in a burst, after this news, and then corrected by 110 points to hit a low of 3024, after creating a triple top at 3110, which set the stage for a 50+ point correction, back to the 200 day SMA at 3056. And the futures fell more after breaking below 3050.

Across the market, millions of stop losses would have happened in last one week.I will share a very interesting chart in a followup mail. You need to see that.

There is no new Optional Trade currently, but once the futures close above 3060, we can get some new trades. There are no General Trades anyway. They will be possible after volatility comes down. Thanks.

P.S. When I started writing this mail, the futures were at 3040, and they hit 3080, and they are back at 3040 again by the time you finish read this mail. High volatility!

Comments are closed.