Here are today’s key levels for the eminis
The first two sessions this week have
mirrored one another. Early selloff in the morning, sideways churn for hours to
follow. All of the potential profits have been offered early, releasing intraday
traders away from the screens to pursue life’s enjoyment out of the office.
That’s a good thing… I personally look forward to the summertime markets where
profits are booked and price action stalls before lunch!
ES
(+$50 per index point)
S&P 500 emini futures made two distinct swing
moves lower by noon EST, then finished the session rolling sideways along the S2
value. Both of those swings downward were easily & clearly tradable, good for
+4pts each or +8pts total overall. From there to the close nothing much
happened, but I’ll take half-days at work like this every day.
ER
(+$100 per index point)
Russell 2000 emini futures closed out Monday inside a
four-hour length sideways coil of +/- 2pts in width. I fully expected a strong
break and directional swing, but that didn’t happen. The ER traded between 769
and 765 most of the day, with a couple brief blips outside that rolling range.
There were two – three swings lower good for +2pts or so each, and some false
wiggles in between. Low-range day for the ER, just a session to tread water or
pick up some chicken-picking profits from within.
ES (+$50 per index point)
Daily chart picture of the S&P shows it
swinging straight sideways in widening fashion. This expulsion of energy is
usually bearish: markets that coil & consolidate before directional breaks
usually expend that energy upwards. Sideways gyrations usually exhaust markets
and result in lower levels ahead.
1303 – 1300 are now the widely watched levels
of support. Any daily close below there sends price action back toward 1286 for
retest of most recent lows again.
ER
(+$100 per index point)
Small caps have been the bull’s stalwart for
literally years now. With the recent failings of SOX and NDX, small caps (and
mid caps) are left to drag all indexes upward alone. Can that be sustained?
Until 758 and then 751+ break support on a daily closing basis, this chart
remains 100% bullish.
Summation
Jobless Claims and Bernanke’s speech tomorrow may cap volume and movement today.
Absolutely anything is possible inside any given session for any financial
market. That fact supersedes all. But, this is a session I’ll play with light
positions unless a trend move breakout appears. Tomorrow and Friday are also
end-month sessions where big funds will likely play the usual markup games.
Upside pressure could begin today.
The final three sessions here offer solid
profit potential, and of course our goal is always focused on weekly performance
rather than individual days. No trader can be profitable every day, and no
experienced trader expects to be. Week over week and especially month over month
is the true way to measure one’s performance. Any given day (or three) results
are irrelevant to an annual performance, unless those days are left to
uncontrolled loss. To be profitable more weeks than not and therefore more
months than not is all that really matters to serious professional traders.
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.