Emini futures traders focus on the Fed
Finally, the latest saga of “As The Fed
Turns” soap opera is aired later today. Viewers have been pinned to the sofas,
captivated by what lies ahead and apparently paralyzed ahead of the showing.
Last week’s abnormally low intraday range & volatility has been followed by two
of the most comatose emini sessions ever witnessed in modern history. That is
due to change real soon, just past 2:15pm EST.
ES
emini
(+$50 per index point)
S&P 500 futures have held inside a 4-point
total range for the past two consecutive sessions. That would be 13.5
pit-session hours of duration. I myself cannot recall ever seeing two days dead
as this, and obviously most all serious = professional traders are simply idle
right now. The complete lack of volume and price movement speaks for itself.
ER
emini
(+$100 per index point)
Russell 2000 futures also chopped hard thru a
4pt total range with very brief little blips barely outside that coil. When it
blows, it will blow out with emphasis, and soon.
Summation
We are trading thru some highly unusual and soon to be historical times in the
market. The Dow is poised to reach new all-time highs. S&Ps are trading at
multi-year highs. Intraday ranges are nonexistent in the process. Gold futures
have eclipsed $700 per ounce on their way to far higher levels. The US dollar is
getting pummeled, and that trend has just begun. Look for the GBP and EUR to
gain another +1,000 pips against the USD in the near future, and more after
that.
But, we are told that inflation is contained.
We were told that a strong dollar was good for the economy as touted for so many
years and now it will be spun that a weaker dollar is just as favorable for
stock. The only thing that matters is interest rate decisions, whereupon the
fate of stock index markets is straight upwards upon hearing the Fed is
finished. Is that more or less the mentality of emotional market players right
now? One thing is for sure: small range days beget large range days. Stay tuned
for some wild market action coming to a chart near you, probably later today!
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.