Why April was a good month for emini traders
Friday’s end-month session went
according to its usual plan. Morning swings and sideways pin for hours afterward
into the close. We’ve seen this pattern over and over and over again… bug
money players mark up and then prop up the tapes. Unless some strong catalyst
outside mutual fund shenanigans emerges to push price action directionally,
end-month sessions are simple to trade. Take the buy signals coming out of dips,
let them ride thru the inevitable momentum burst and shut it down until the next
session arrives. It really is simple as that and highly profitable, too.
(+$50 per index point)
S&P 500 futures opened on top of daily pivot
support and rose several points to the session high. From there it was a
sideways pin into the closing bell, with low-range swings along the way. A very
tradable “one & done” long signal good for +4pts or better inside that first
hour, then shut down those charts and walk away for the weekend with solid
(+$100 per index point)
Russell 2000 futures opened below the daily
pivot, shot right thru it on the window-dressing ramp and fluttered around thru
the second half of that end-month session. It offered long trade profits early,
although they were a bit hard to cleanly catch. Couple of tradable wiggles in
the afternoon, but I myself was out enjoying bright summer sunshine instead.
New-month money could keep tapes pressing higher today. After that, markets are
free to move on their own accord. A bit of econ data this morning near 10:00am
EST and several more reports later in the week are capped by the employment
situation on Friday. That collection of voodoo math is quite probable to rattle
the tapes, and I expect a solid week of trading potential ahead.
April was very profitable and sweet to trade.
No valid reason for any skilled emini trader skillfully working a profitable
method or approach not to have cashed in big-time from the month just past. May
has traditionally been one of my favorite months to trade, and this summer could
be shaping up for some pretty wild action just ahead. Long-term charts of the US
dollar index, crude oil, gold and some major stock indexes clearly suggest
higher volatility ahead. Bernanke’s notice of a flexible Fed ahead thwarts the
blind-bull belief that stock markets must march straight upward from here.
Regardless, our task is merely to navigate each
individual session successfully. That means keeping net-loss days contained
while allowing net-profit days to blossom. Expanding ranges and volatility make
the process much easier, and I’d opine when it comes to that, that we haven’t seen
Trade To Win
(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.