This week should offer some great setups, here’s why
March Madness is upon us. Upsets
abound. Surprises happen in the final minutes of action. A shift in
standings from leaders to laggards will occur. But that’s just the stock markets
in general… we have college basketball action to follow, too!
ES (+$50 per index point)
S&P 500 futures opened lower, surged upward
early on and spent the remaining 5+ market hours in a sideways holding pattern.
Around 2:00pm EST we saw a little wiggle lower that waggled back upwards to
finish the day back inside its flat coil.
Nicely tradable early on, then a midday siesta
before the afternoon gyrations.
ER
(+$100 per index point)
Russell 2000 futures surged lower off the open
and then turned upward in short squeeze fashion as well. Holding pattern all day
from there did the customary late afternoon stop-run dip before closing back up
at session highs.
Very typical to see those afternoon corrections
suck in the reversal traders who’ve been itching to fight the trend all day, and
it works. Once the shorts clambered in, planned buy programs took them out
again.
ES (+$50 per index point)
Last week’s action finished with price levels
right near well-watched 62% resistance, a pivotal line on the chart. If they
hold above 1290 where 50-day exponential moving average resides, bulls are still in good shape.
A break & close below that value seeks 1265 ~ 1250s next.
ER
(+$100 per index point)
Likewise, small caps clambered back up to
middle resistance levels of the latest swing lower after four days of pressing
the 50-day moving average. Below 739 is weakness, above there has bulls back in control. A
confirmed break below 725 then sees 710 to 700 as next price magnets below.
Summation
If traded correctly, last week was highly tradable. No big trend moves, not even
one outsized intraday range beyond the norm. However, volatility and hence
intraday swing ranges are opening up. There will be much more to come, I’m quite
sure. If never in our lives there were any greater ranges or wider swings than
currently offered, any emini trader (properly equipped) has no reason or excuse
not to succeed methodically. Better than that, we might very well see one of the
more volatile trading years unfold here in 2006.
Option expiry week and triple-witch event this
Thursday & Friday combined. Look for one/two potentially wild sessions, and
the rest should be decent to very good as well.
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.