The ongoing correction in S&P500 index that started on Nov 4th is still not showing any signs of completion. Given the downward momentum, the S&P500 is likely to correct further to 2000 level in the coming week. The Sell signal is firmly in place, and long positions must be avoided till Buy signal comes. If the S&P500 index takes support around 2000 level, and reverses to close above 2020, then aggressive traders can consider a new long trade till 2050. However, a clear buy signal may come only above 2050, if it were to happen in the coming week. Traders with short positions can continue till 2000-2010 levels, which is another 10-20 points. If S&P500 index closes below 2000, then fresh downsides will open up, and fresh short trades can be started.
Category Archives: Emini Futures Trading Strategy
Emini Futures Chart Analysis – 10Nov2015
Date:Nov 10, 2015 Open=2072.25 High=2079.00 Low=2064.50 Close=2078.10
S&P500 Index is currently in uptrend, after forming a solid double-bottom at 1860-1870 level in early October 2015. The index has come back above 2050-2100 level from where it fell during Aug-Sep 2015. As long as S&P500 Index is above 2000 level, the uptrend remains intact, and we should remain long with futures. Below 2000, longs must be closed immediately, because deep downsides can start. So the major stop loss for all long trades is 2000 on S&P500 Index. Active traders can do long side trades on S&P500 E-mini Futures with 15-20 points as stop loss.
Bonus Trade: Emini S&P500 Futures have 50-70 points upside this week
Trade Update Sep 12, 2015: This was a successful trade. The index moved up by 60 points. S&P500 hit a high of 1988 on Sep 9, 2015 while our target was 1981. The gap up on Sep 8 was a clear indication of upmove. Traders could capture this upmove in parts, which is the best we can do on in such rapid moves. And it was good decision to regularly book profits because the index fell back to 1940 in the following 2 days, giving opportunity to buy again.
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S&P500 index Last week closing (Sep 04, 2015): 1921
Potential upside target this week (Sep 11, 2015): 1981
Stop Loss on this long trade: 1911
S&P500 Emini Futures Trading Strategy is to buy on dips
and book profit at every 10-20 points gain.
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Bonus Trade: Buy S&P500 Emini Futures at 1900 for target 1945
Trade Update: 11.00 am US EST, Aug 27, 2015: Both targets of 1945 and 1965 have been hit this morning. The stop loss of 1900 was hit yesterday morning, but the second attempt was successful in getting the big trade in our bag. Please read below for trade details.
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10.00 am US EST, Aug 26, 2015:
Hello Folks, here’s the next Bonus Trade for all our website visitors.
Buy S&P500 Emini Futures above 1900 for target 1945, with 1890 as stop (all three numbers are S&P500 Index spot price, not ES futures value, which may fluctuate more). Current value of S&P500 index is 1901. 45 points gain, with 10 points risk, is very good risk-reward ration. This is high reliability trade after 5 days of large falls. This is not a day trade and may need holding for 2-3 days, though the upside target of 1945 could come by end of today also.
Please Note: If stop of 1890 is hit, then you have to get back into this trade when 1900 is crossed again. This trade is for active traders who can take volatility. This reversal trade is not to be missed. The ongoing large volatility in markets is giving big trades.The upside probability is high, and such a trade comes along once a quarter, and must be taken with both hands. Large traders can buy more contracts, and hold some contracts for 1965 target, after selling a majority at 1945.
Bonus Trade: Buy S&P500 Emini Futures at 2010 for target 2045
Hello Folks, here’s a Bonus Trade for all our website visitors.
Background Notes: The S&P500 has been correcting relentlessly this week from 2100 to below 2010. The Index is oversold in the near term, and is poised for an upmove at the first opportunity, which may come today or on Monday. The Index is not suitable for short selling at current levels, as shorts may want to cover rapidly once the upmove starts, to protect their windfall profit this week. The 90 point correction this week creates a long trade opportunity as follows:
Specific Trading Opportunity: Buy S&P500 Emini Futures (ES) at 2010 for target 2045. 2010 is the current market price. This is not a day trade and needs holding for 5 days. The target 30 points upside is possible in the coming week by next Friday. This trade is for aggressive traders who can take volatility. The Stop Loss for this trade is 1997 on S&P500 Emini Futures (ES).
Please Note: Even if the Stop loss is hit, traders should get back in the trade once S&P500 Futures come back above 2002. This reversal trade is not to be missed. The upside probability is high, and such a trade comes along once a quarter, and must be taken with both hands.