Here’s The Primary Emotional Catalyst For Trading Today
Premarket
futures are reacting to Hurricane Katrina as you well know long
before these words greet you. The petroleum-based futures have launched to new
recent = all time highs ahead of the storm, which likewise affects stock index
markets around the world. Add in the usual insurance company stock plays,
constructions equipment stock plays, etc and it could be a rather active session
in this session indeed.
S&P 500 dropped nearly -10pts inside the first
two hours, bounced seven of them upwards and immediately got slammed by further
selling back down to session lows from whence it came. Gyrational, program
driven session where nothing in between those three rapid price surges occurred.
ES (+$50 per index point)
Monday’s initial resistance near 1208 and
especially 1210+ are easy to see here this morning. Price action trading above
the 1211 mark will have buy stops kicking out from open shorts and new longs
alike.
NQ (+$20 per index point)
Nasdaq 100 spanned -18pts down and +14pts up
again. Paltry total dollar ranges, but it did have the most V-shaped tape of all
indexes.
Bullish above 1567 and below 1560 is the general
bias for the start of this holiday week.
YM (+$5 per index point)
Dow Industrial futures slammed downward, buzzed
sideways, popped higher and immediately sold off into the close. 10420 and then
10440 are the obvious clusters of stop orders staged for today’s early action.
ER (+$100 per index point)
Russell 2000 futures plunged -$1,200 per emini
contract inside the first 90 minutes of trading, and relatively little else for
the next six loooooong hours to end that session and week.
652 level is next visible resistance, with a
break & close above 655.50 being the bullish base for today.
(Price levels posted in charts above are compiled
from a number of different measurements. Over the course of time we will see
these varying levels magnetize = repel price action consistently)
Summation
The hurricane event dominates all news channels and will be the
primary emotional catalyst for trading today. We’ll play the same method signals
as always, and it is possible to see more volume in the market as peripheral
players step in to trade around the news event. I’m playing 1/2 size (or
smaller) normal contract positions until past Labor Day weekend as summer season
draws to an eventful end.
Trade To Win
Austin P
(free pivot point calculator, much more inside)
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.