Rising volatility is good for emini traders
It’s great to see historically normal
market action returned to our tapes. That’s not to say the unprecedented
micro-range sessions or even periods of those are gone forever… next dead
market period could precede the June FOMC drama. However, we’ve expected and
predicted (for a long time now) exactly this type of intraday price action. That
was not any type of clairvoyance on our part… just an understanding that
periods of historically low volatility MUST be followed by equally high
volatility over the course of time. That is how financial markets cycle, that is
the core of how they survive.
ES
emini
(+$50 per index point)
S&P 500 futures rolled sideways thru several
very profitable swings. This option expiry Friday reminded me of the good ol’
days back in 1999 ~ 2002… potential profits flying all around in both
directions, all day.
ER
emini
(+$100 per index point)
Russell 2000 futures behaved the same. Neither
buyers or sellers could wrest the upper hand, which led to numerous profit
opportunities for longs and shorts alike. Directional or sideways sessions are
equally welcome by us… just keep the tapes moving and everything will be just
fine!
ES
emini
(+$50 per index point)
S&Ps hit the dual support layer on Thursday and
held it by the close on Friday. Fairly predictable behavior. Unless buyers step
in and pop things back to new recent highs, 1240s and then 1200s are the next
visible zones of destination to come.
ER
emini
(+$100 per index point)
Small caps came tantalizingly close to the 705
~ 707 layer of attraction. This “hot money” sector has resisted selling to a
comparable degree of S&Ps and Nasdaq, which have been trimmed tighter on the way
down. Upside squeeze moves should outperform in this index, while continual
selling will probably equalize thru all indexes ahead.
Summation
Should be another rock & roll week straight ahead. Bernanke & ilk have various
speaking engagements, which have potential to jam the tapes on a glib word or
utterance. Plenty of emotional econ reports, including the big GDP on Thursday.
Friday is an early close ahead of the Memorial Day weekend holiday, which will
condense trader’s action that morning before volume dries and dies.
With pre-market futures poised to open deep in
the hole this morning, we can expect more of the same today and forward. Long
live rock & roll, and long last markets than dance to the beat of those wild
tunes!
Trade To Win
Austin P
(Online video clip tutorials… open access)
Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity
options and commodity markets. Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.