- The S&P500 Emini Futures have successfully tested 1900 support levels 3 times during the last 3-4 days, which should give 60-70 points gain above 1900 level before next selling pressure comes. There is a long trade trade opportunity above 1940 for potential targets of 1960-1970. However, it is not clear how long the buy signal will last. So traders have to remain very cautious.
- As mentioned in previous posts, as long as S&P500 Index is below 2000 this year, there will be constant bearishness in the market from whatever factor that catches the market’s attention for the day: China, Crude, Currency etc.
- Once the S&P500 Index closes above 2000 (futures maybe around 1993-1995 then), a fresh long trade can start with 2040-2050 as likely targets. That might be a higher quality long trade compared to the current opportunity from 1940 to 1970, with less selling pressure or chances of sudden overnight reversal.
- On the other hand, if 1900 level breaks down for any reason, then the previous low of 1870 may not hold this time, and we may see newer low. Traders can become short below 1900 with stop at 1910.
Category Archives: Emini Futures Trading Strategy
S&P500 Emini Futures Trading Update: 06Jan2016
- The S&P500 Emini Futures futures made a high of 2017 after our buying at
1993 (on 4th Jan), and reversed from 2013 yesterday (5th Jan) to a low of
1971 in pre-market selling today morning, and again moved up to 1995
intraday, fell down to 1971 again, and closing at 1984. More than 100
points of distance covered in one trading day! - We have asked active traders to take profits on every 10-20 points gain, because market is volatile and 10-20 points profits are disappearing rapidly. So some traders had already taken 15-20 point gains by selling their long futures around 2010-2013 level over the last 2 days (from the buying at 1993 on 4th Jan).
- In addition, this morning, we have asked active traders with 5-10 contracts to buy 2-3 contracts at 1977 with stop at 1971 (day low) for target 1991, which has already been hit at 10:23 am US EST, giving 14 points gain, and we have gained once again from taking a position against the knee jerk selling in pre-market hours.
- The average daily high-low range for Dec 2015 month was 27 points, and
similar trend is happening in Jan 2016. With such daily range, any stop
loss less than 25 points is constantly at risk. Our approach is to keep
smaller stop losses of 5-15 points, and try to select the trade entry
better. Thanks.
Emini Futures Trading Update – 04Jan2016
Hello Folks, Good morning. Wishing you a great New Year with health and success. This week starts with volatility coming from China, and their market was halted after -7% circuit breaker. What a way to start the new year!
Historically, Jan is a month of large moves, and it often takes the first few days to get the stage ready. So what we are seeing today may not be the actual trend of Jan, going by several past years.
We exited our long at 2049 Stop, because weakness was visible in the charts below that level. The S&P500 futures are at 1999 currently, down 37 points, or -1.8%. Such gap-down moves can’t be planned or traded. So its good that we had exited our long positions last week. Once the market stabilizes around 2000 level, then we could get an interesting trade set-up bwtween 2010 to 2090. As of now, there is no new trade. Thanks.
S&P500 Emini Futures Trading Update – 04Dec2015
As of 2.30 pm US EST, the S&P500 Emini Futures have bounced back to 2085. A strong recovery of 35 points has happened from yesterday’s closing, which indicates buying strength at lower levels, and therefore higher levels above 2100 can be attempted again. The S&P500 index got deeply oversold rapidly over last 2 days, and such a bounce back was likely. That’s why we did not initiate any short trade, while many traders did that yesterday and have been caught today in this sharp reversal. We are still looking out for suitable long trade.
This high volatility is not conducive for trading in a reliable way. So we will wait for market to stabilize. The buying zone re-starts from 2085-2090 levels, because the lower levels of 2050 have been tested successfully this week. Some of our larger traders who bought a few contracts yesterday around 2045 level based on my mail, were able to sell at 2055-2065 today during the early morning bounce. Unfortunately, such tactical plays can’t be done while trading with 1-2 contracts. Our next trade will be clear after market close today based on analysis of market technicals. A long trade could be considered on closing above 2103.
S&P500 Emini Futures Trading Update – 03Dec2015
As of 2.55 pm US EST, the S&P500 Emini Futures have dropped to 2045. They are now 40 points below our stop loss exit at 2085. This indicates the extent of selling pressure that came in yesterday. I have been observing the futures since 3.00 am. There has been lot of volatility, and its difficult to trade with single contract. This fall today can not be traded by signals or emails. It can only be traded in real-time because it can reverse equally sharply as some indicators are already in oversold area. We will let this sudden selling play out. Continue reading