Category Archives: Emini Futures Trading Strategy

Emini Futures Trading Analysis- 24Mar2020

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Hello Folks, the S&P500 futures closed at 2380.00
Today’s Range: 2216.00 – 2387.75

It has been a week since the last mail, but we were all watching the unprecedented volatility in the futures. Trading in such conditions is like going into a tsunami with a raft, and there is no positive outcome possible without taking sizeable risk. And that’s not possible in the structure of this service, where we want to take trades with upto 20
points stop loss. In the current conditions, any trade with less than 50 points stop loss
does not have any chance.

Key Levels for S&P500 Futures trading:

  • Basic stability will start above 2500.
  • Safety will start above 2800.
  • Reliable trades with low volatility will come above 3000.

The futures are very likely to test 2500 this week, on the back of the stimulus package being planned by the US Govt. Currently at 2380. So 130 points upside is visible, but downside can be 100-150 points, which makes it very difficult to capture it as a futures trade. Continue reading →

Emini Futures Trading Analysis- 11Mar2020

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The S&P500 futures have closed at 2741, down 4.50% for the day, and wiping out all the gains of yesterday. The selling pressure is relentless and even small gains during the day are meeting aggressive selling. The futures are now 330 points below the 200 day moving average, which is a lot of damage.

Our S&P500 Emini Futures Trading Strategy is to wait for this intense high volatility to subside, and for the futures to show a couple of green days, not like one green day followed by deep red day! Clean trades with low volatility will be available above 3060.

There is also a recovery trade of 250 points from 2800 to 3050, with 2700 as Stop loss.

Emini Futures Trading Analysis- 05Mar2020

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Hello Folks, the S&P500 futures are at 3022.00 (in after market trading). The futures went down till 2996 during the day, falling from a high of 3114, which was yesterday’s closing. So today was another 100 point down day, with two 50 points spikes, to take out stop losses of all kinds of traders. That’s why this market is best avoided till it stabilizes.

All this up/down movement is to test the 200 day moving avg, which is currently at 3068. Major resistance on the upside is at 3150, and major support on the downside is at 2850. So there is a large 300 point band, in which the futures can decide their daily direction.

In current market conditions, we can’t do any real trade with less than 30 point stop loss. 20 points are going away rapidly in 5-10 minutes as if they are nothing. And support and resistance levels are also wide apart, as the S&P500 index is trying to navigate this period of high volatility.

[Bonus Trade]
Buy at 3020 for Target 3068 with Stop loss 2990.

Our S&P500 Futures Trading Strategy is to be very careful, and take very few trades after careful observation. The market has not yet stabilized, so our position size must be small, to avoid sudden losses. Thanks.

Emini Futures Trading Analysis- 04Mar2020

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The S&P500 futures closed at 3114. It was a big green day, after a big red day. These are all indicative of the market trying to adjust itself. A retest of 200 day moving avg (3068) is sure to come tomorrow, 5th March. Traders should take profits around 3100 and wait for lower levels like 3050 to consider a new trade. 3050 should provide short term support, but 2970 is the real support on the downside.

Major resistance on the upside is at 3150, and major support on the downside is at 2850. So there is a 300 point band, in which the futures can decide their direction.

Our Emini Futures Trading Strategy is to be care careful, and take very few trades after careful observation. The market has not yet stabilized, so our position size must be small, to avoid sudden large loss.

[Bonus Trade]
Sell at 3090 for Target 3040 with Stop loss 3120.

This trade can give 50 points gain for 30 points risk. Unfortunately, in current market conditions, we can’t do any real trade with less than 30 point stop loss. 10-20 points are going away rapidly as if they are nothing. And support and resistance levels are also widely placed, as the S&P500 index is trying to navigate this period of high volatility.

spx500-futures-daily-chart-analysis1-04mar2020

Emini Futures Trading Analysis- 03Mar2020

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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. Continue reading →