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.