Following ER futures helps trading ES
Tuesday’s session was all about the ER
throwing its own bullish party while other emini symbols struggled to go
anywhere directional.
ES (+$50 per index point)
S&P 500 futures held inside a 7.75pt total
range once again. It did so in rather rolling fashion, bouncing between R1 and
the daily pivot with its widest little swing up to R2 and right back down again.
A scalper’s session until the 2:00pm EST pop and drop V-swing move.
NQ (+$20 per index point)
Nasdaq 100 futures traded up to its R2 value,
made a scalper’s drop to the daily pivot and then chopped sideways into the
closing bell. A day of consolidation, little else.
YM (+$5 per index point)
Dow Industrial futures hung between R1 and
daily pivot all day long. No range to speak of, storing energy for the next
directional push.
ER
(+$100 per index point)
Russell 2000 futures launched upward off the
open, magnetized to its R2 value for hours, lifted into R3 and then eased off
those highs by a tad into the close. As usual, ER had the greatest range and
dollar-value travel intraday relative to all other emini futures
Summation
The easiest potential money while trading ES futures is following the ER as a
leading proxy. Far more often than not, the biggest intraday swing moves in ES
are in harmony with the ER’s lead. That was certainly true yesterday, where
following upside bias in ER and selling into late-day resistance points when hit
simultaneously were the easiest (is there such a thing?) ES trades offered.
When ER and ES chart directions diverge, the ER
is most likely to make tradable moves while ES chops or coils. When both symbols
agree in direction, the best potential setups for directional or trending action
exist. Use the ER as a leading index proxy (SOX is long defunct in that role)
for directional bias in the ES, and most of the better trades will be hit while
most of the noise is missed. Hope this helps!
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.