Wednesday, September 29, 2010

Emini Futures Trading / The Hidden Crash


Today the trading range got a little bit tighter. The December contract for the S&P 500 Emini futures once again failed to close above 1144 or below 1136. The 1144 is last Friday's settlement price. A close above 1144 opens the door for the market to trade higher to the 1151/1152 Weekly Trading Zone. The market did trade above 1144 briefly on the Globex session Sunday night. Since then we have seen no less than 4 failed break out attempts. On the downside, price was able to briefly breach the 1136 early Tuesday until the Consumer Confidence numbers were released. Consumers it turns out, were (surprise, surprise) less confident than expected. What? Really? So what happened next? The market rallied Up18 points on the news. Yep! Rallied.

We are all now official citizens of Bizarro World. Where up is down and down is up... If you've never seen the Bizarro episode of Seinfeld - Click Here

Tomorrow we get Unemployment Claims, Final GDP, and two (2) speeches from Bernanke. I'm going to go way out on a limb here and suggest one of these high impact events will potentially wake this slumbering market.

Tune in tomorrow from 11AM-4PM Eastern for live charts, lively discussion and live trades. Non-members Register Here

Dollars, euros, and yen are all just currencies you can price any asset in. Everything is cheap or expensive relative to the currency you hold.Thus if gold is truly a world currency, then the S&P 500 index of U.S. stocks is dirt cheap when priced in it. For every ounce of gold, you can now buy more than five times the amount of stocks you could have ten years ago, as shown below. The tricky question is where this stocks-to-gold ratio will go over the next ten years:

chart of the day, s&p 500 in gold, 1971-2010, sept 2010

Here is the video we shared during today's broadcast. This years mission trip to our orphanages in Uganda and Kenya. Tip o' the hat to my niece Margaret for a great editing job.

Weekly Trading Zones / Daily Review  

Pray Hard & Trade Safe!

No comments:

Post a Comment

Your comment will be posted within 1 hour of acceptance by our editorial staff.