Wednesday, October 20, 2010

Emini Futures Trading / Beige Book Boogie


from the trading desk of CFRN...
Beige Book Boogie? OK, maybe it's more of a Waltz. We started the resumption of the E-Mini S&P 500 on the 8:30 AM CST open at $1164.00 toward the low of the session. The Interest Rate Decision of China reversed Tuesday’s rally in the US Dollar Index and gave a lift to the Stock Indices and other tangible products after the reaction was viewed as overdone. The Equities and the US Dollar have enjoyed an inverse relationship as of late. Corporate earnings such as Boeing helped the bullish sentiment for the E-Mini S&P 500 along with the idea that the Fed can simply print more money as their stimulus recovery is needed. The Beige Book reflected a sluggish recovery, signs that uncertainty still mars the optimism of a speedy recovery. The Federal Reserve announced their plans to buy $500 billion of Treasuries over the next six months which also did not help the case of the US Dollar. The CFRN Weekly Trade Zones of $1165 - $1166 and $1172 - $1173 were hit. We suggest the CFRN Weekly Trade Zone of $1165.00 as our new support for tomorrow. Tomorrow, we look to the Initial Jobless Claims at 7:30 AM CST. If we show any positive numbers the E-Mini S&P 500 should rally through our recent resistance numbers. The Stock Indexes have shown such strength as of late that even a bad report may be shrugged off for a higher trade.

S&P 500 Emini Futures / ES
If the CFRN Weekly Trade Zone of $1165 - $1166 holds, this market may trade in the $1172 - $1173 range tomorrow. If we can break through $1180.00, we may go into the next CFRN Weekly Trade Zone of $1182 - $1183 and on through to $1189 - $1190. If the E-Mini S&P 500 can break through the $1180.00 resistance area, we look to a higher trading market tomorrow.

L. Burton / CFRN Columnist 

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