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
Category Archives: S&P500 Futures Trading
S&P500 Emini Futures Trading Update– 02Dec2015
After many months, today our Stop Loss got hit at 2085, on the latest buying at 2100 done yesterday afternoon or tomorrow morning. So we are down 15 points this month as of 2nd December. In light of the sudden selling pressure today, exiting the long trade at our stop loss was the right thing to do. However, not to worry. We have made our success with careful trading strategy, and we shall recover these 15 points and lot more in the coming days/weeks.
The market is giving us a message that long positions, which took the index to 2100 yesterday were not willing to hold ahead of the US Fed meeting later this month, and many stop losses, including ours, got hit today. The S&P500 index is out of Buy Zone today but it is not in Sell zone yet. The market uptrend is still intact, but it needs caution for next 1-2 days. There is no trade for tomorrow (Thursday, Dec 03, 2015). We shall analyze the market data to arrive at our next trade. Thanks.
S&P500 Emini Futures Trading Update – 01Dec2015
During the last 5 trading days, volume in S&P500 index put options has lagged volume in call options by 35% as investors make bullish bets in their portfolios. This is among the lowest levels of put buying seen during the last 2 years, indicating extreme greed on the part of investors (doesn’t sound good to me because my contra indicator says, this is walking on thin ice till we cross 2135, the previous lifetime high). How long will this upmove last? We will see based on the selling resistance faced at 2120. Technically, this is a Buy zone. 2100 has just been crossed. If it can hold, then 2120, 2135, 2150 can come. Stop Loss on every long trade is 2085. If you want to a very safe trade, then you will have to wait for 2135 to be crossed on closing basis. The Stop loss on those trades would be 2120.
S&P500 Emini Futures Trading Update – 30Nov2015
The S&P500 index is technically in Buy zone but it is losing forward momentum after 7 days of tight range. It is not in the Sell zone yet. I believe the market leaders are trying to decide if they should make an attempt to cross 2100. A failed attempt after so much preparation would mean sure shot fall to 2000 or lower levels. A successful attempt will take the index to 2150 or higher. So our high probability trades should come above 2100 or below 2070. As the S&P500 is still undecided, we will wait for the direction to emerge. We may see a big move of 40-50 points once the direction emerges, and we will participate in that move. Thanks.
S&P500 Futures Chart Analysis – 27Nov2015
S&P500 Emini Futures have been trading in a tight range between 2080 to 2090 for last several days, with support at 2070. Therefore, as long as 2070 holds, the most likely targets are 2100 and 2120. The trend is up and we should stay long. If for any reason, the index starts falling, then short trades can be started from 2060 with stop loss at 2070. The probability of sudden fall is less because the index has been spending time and consolidating at the current level of 2085, waiting for the Thanksgiving holidays to get over.