Emini traders: here are today’s key levels
The long-awaited Fed decision wasn’t
one: traders fixated on interest rates to the exclusion of all else were left
dangling on what lies ahead. “Will they or won’t they” is the new constant
mindset of traders ahead of every semi-pertinent blurb of econ data released.
(+$50 per index point)
S&P 500 futures held the three-day dead coil
range, then buzzed sideways past FOMC news to end the day unchanged. We can be
sure that the FOMC minutes release will create much more directional action than
the actual event itself did. Go figure!
(+$100 per index point)
Russell 2000 futures also buzzed sideways,
relatively weaker than the S&Ps. Small, sideways swings were the result of a Fed
report that delivered nothing of clarity to those gaming every word.
ES (+$50 per index point)
Four days of hanging in space, inside of a 10pt
total range. This will not last much longer, we will see a break either way real
(+$100 per index point)
After three straight days of going absolutely
nowhere between the bells, ER chopped its way a bit lower on Wednesday. Unless
buyers step in with gusto, back to the 50dma near 760 is next.
Forget about oil prices above $70 and rising. Never mind gold at $710 per ounce
while the USD gets plundered, that currency probably to have seen its last
relative highs for several years or more. All commodity markets are in the early
stages of full-bull ascent, with honest inflation (not to be confused with
government b.s. readings) rising thru the roof.
Kevin Haggarty’s broad market assessment of an
economy in trouble is right-on as it always is, in my opinion. But that means
nothing to stock market players right now. Once interest rates cease rising,
stocks go to the moon. That is the irrational fixation with thick blinders on to
block out all else.
Always remember that stock prices can remain
irrational far longer than any sensible contrarian can remain solvent. Stocks
are merely pieces of paper, they are derivative instruments as opposed to actual
commodity goods. Stocks can remain marked up or down on pure emotion for
extended periods of time, but not forever. Regardless what our opinion is of the
stock market at any moment in time, price action dictates all. Sideways remains
the short-term bias, but recent dead ranges are due to break soon, and it will
be a big break indeed when that happens.
Trade To Win
(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.