Saturday, October 09, 2010

Emini Futures Trading / The Energizer Bunny


from the trading desk of CFRN...

The Energizer bunny keeps Going and Going and Going….
Despite a bearish Unemployment Report, the SP emini managed to finish the day toward the upper end of the trading range.  The unemployment report was lousy this morning showing 95,000 workers had lost their jobs in September which was below analyst expectations.  The SP Emini initial reaction was to the downside after the report but cooler heads prevailed and buyers re-emerged to take control.  Early sellers were scratching their heads when the bad news was being digested.  Sellers were forced to cover there SP Emini positions when the market started rallying also adding to the upside action.  The sentiment on the street is if things get worse economically the Fed will boost monetary stimulus to prevent an economical tailspin; so with this back drop in play commodities benefited with rebounds in the Gold and Crude Oil today.  For the SP Emini I guess the path of least resistance is to the upside. 

Technically, the CFRN Weekly Trading Zones were in play with the 1147/1148 level acting as quick support this morning and 1165/1166 acting as overhead resistance.  Midday CFRN members benefited from a quick 2 point scalp selling 1160.75 and covering 1158.75, a textbook “Sandbox” trade from the CF Indicators in DT Pro.

What should we expect for Monday?  If we stay on this path look at the 1153/1155 level in the S&P Emini to act as support and look for another test of this weeks upper trading zone or the 1165/1166 level.  Traders have to use caution up at these levels because the RSI and Stochastic are getting into overbought territory and are suggesting a potential turn in this market.  If we close below 1133 in the SP Emini, the first sign of a correction may appear, til then the market keeps going and going and going…….

S&P 500 Emini Futures / Hourly Chart

The CFRN Weekly Trading Zones have given us a good roadmap for support and resistance levels so plot your levels on your DT Pro platform when you receive them Sunday night.

Pray Hard & Trade Safe!

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