What To Expect During The 1st And Final 2 Hours Of Today’s Trading…
Pre-market futures are slightly red as
we head towards the open of a new week ahead. With summer vacations mixed with
August option contract expiry this week, it could be a repeat of the weekly
action just past.
ES (+$50 per index point)
S&P 500 swung sideways in rather rangy fashion
on Friday. Two failures at pivot point resistance split by an upside pop from
sideways coil near session lows. End result was a lower close and open gap left
behind in a typical late summer session.
Monday’s bullish zone lies above 1237 and
bearish zone remains below 1232, with the 5pt range in between still no-man’s
land.
NQ (+$20 per index point)
Nasdaq 100 made the bulk of its move between
4:00pm and 4:15pm EST on Thursday following Dell’s earning report. Friday was a
miniscule range, not worth trading if you ask me. Today’s range for the stodgy
tech index is bullish above 1600, bearish below 1593.
YM (+$5 per index point)
Dow Industrial futures traded to new session
highs and held that ground into the closing bell. Still bullish above the 10665
level, bearish below 10635 if it trades down there.
ER (+$100 per index point)
Russell 2000 futures opened on a sell signal
near 665 that offered big gains on a trade or two from there to session lows.
The subsequent afternoon squeeze met a rash of new sellers parked near the daily
pivot point again.
Bullish above 664 and bearish below 659 are the
zones of bias 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}
Laborious
Days
The last two weeks of August are typically a real challenge to trade.
Waning volume creates a market of sideways churn interrupted by program-trade
bursts higher or lower. Trying to position entries ahead of such price
explosions while avoiding stop-killing chop is not easy. The opportunity for
profit exists, but degree of difficulty grows. My approach is to scale back
trade size, take some time off to rest & recharge the batteries and prepare for
a busy end to the trading year 2005.
Expect directional bursts and sideways buzz all
week, first and last two hours each session the slots to trade within on an
intraday basis. Enjoy the midday section away from screens, seek the early &
late moves when they occur and don’t forget the sunscreen for noontime tee
times!
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.