Category Archives: S&P500 Futures Trading

S&P500 needs to close above 2055 for upmove

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Lots of whipsaws have been taking place in the S&P500 (SPX). There is enough fear on the trading floor thinking “what if” the US Fed begins to sound more hawkish than ever before in the context of interest rate hike. However, our view is that US Fed will be “patient” in any interest rate hike. The current market volatility of gap ups and gap downs is to be expected till the Fed’s notes are in the open. Technically, the S&P500 (SPX) needs to stay and close above 2055 for upmove to play out with a target of 2150, a new lifetime high. This will have to coincide with a dovish Fed stance.

sp500-chart-2068-17mar2015

#ratehike  #usfed #dowjones #nasdaq

Buy S&P500 Emini Futures for Target 2055

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S&P500 has been correcting whole of last week and has successfully tested key support of 1990 in the process, and rebounded from there. Very good. Meanwhile, Crude Oil has stabilized and Eurozone is likely to do something positive/constructive for their economy going forward. Today’s correction is a buying opportunity, because there is sufficient fear prevailing in the US market to warrant fresh buying of the S&P500 Emini Futures. Here are the S&P500 index levels for this positional trade which may play out over next 3-5 days.

  • Buy @ Current Price = 2010
  • Target = 2055   //   Stop Loss = 1990
  • Risk Reward Ratio = 45 points reward / 20 points risk = Good.

Please Note: This single trade can give us 45 points, which is the average trading gain of some months. Hence its worth going after with a moderate position, i.e., not full loading, but sufficient loading to make the target 45 points profit material enough to make Jan 2015 a great month to start the new year. As always, for any questions, please contact us.

SP500 Emini Futures Trading – 16Oct2014

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October 16, 2014, New York City: The S&P500 index has been currently up for the last few days and it has corrected more than 100 points through the last 5 sessions. There is a reversal trade on the upside getting ready and the action of the index on October 15, which is yesterday, indicates that buyers are stepping in to buy at around 1850 and we had a very good pull back at the lower levels. So this could have been a combination of short coverings as well as fresh buying. However given the amount of fall that we had, there will still be sufficient short position in the system, so there is at least 50 points on the upside, as soon as the index starts moving up. A suitable Emini Futures (ES) trading strategy will be, to buy the S&P500 index above 1875, and hold it for at least to 1925 or 50 points of gains. The stop for this trade would be at around 1855. We can buy at 1875, keep a stop at 1855 and aim for 1925. In fact the traders who can trade with multiple contracts, can keep certain number of contracts to release at even higher levels like 1950, because if the reversal comes in properly, we can see 1950. But 1925 is a high probability, once 1875 is crossed. That’s a trade we should definitely take. It will be the most suitable trade for the October month.

S&P500 Futures Trading – 9Oct2014

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October 9, 2014, New York City: After doing a good green day, and recovering the prices from the low points of the previous day, the S&P500 almost reversed the entire gains today, and so all the positive work done on October 8, 2014 was reversed today on October 9, 2014 and the market has ended on a day low. So this is bearish, and this also indicates that we will see lower prices from the current level of closing and therefore the S&P500 become a sell as of end of today. Reversing the buy signal that was coming as of yesterday. The suitable trade for tomorrow would be to sell the 7500 at the start of the day and wait for at least 10-15 point gains on the lower side, on the sell trade. A stop for this trade can be kept at 1950, because if it starts going above that then we should exit this trade, and if one wants to keep a slightly wider stop, to a wide tolerance in the market, then stock can be kept at 1967, so traders can choose a stop depending on their flexibility, any stop between 1950-1957 and sell the 7500 futures at the start of day for at least 10-15 points gain. So we can aim for something like a 1930 or a 1920, also if you can hold this trade till we see a green day. The trade reverses at least when we see one green day. Otherwise, today has been a reversal day. Thank you for visiting our website. Be sure to check the website regularly for Bonus Trades, which are high probability trades. All the best for your Emini (ES) Futures Trading.