Monday, October 25, 2010

Emini Futures Trading / G20 Stays The Course - Home Sales Jump


from the trading desk of CFRN... 

E-Mini carves out new high on mild G20 and rise in Existing Home Sales!

We extended to a new high as the G20 stayed the course with no plans to work on any trade imbalances. Commodities benefited from the continued slide in the US Dollar Index. The Fed’s threat of further economic stimulus is still part of the program that investors have come to rely on. Anticipation of a weaker US Dollar gives the tangible commodity a boost with allocations coming in for more aggressive risk management. The Existing Home Sales rose 10%, more than expected creating a second upswing to the high of the day of the ESZ10 $1193.00 at 9:00 AM CST. Earnings were mixed, but seemingly more bullish than bearish. We stayed within the CFRN Weekly Trade Zones of $1185 - $1186 throughout the majority of the day session. Tomorrow, we look to the Consumer Confidence Report at 9:00 AM CST. We could see a turn-around Tuesday if the Consumer Confidence numbers are lower than expected. The focus this week will be on the VIX and its gauge on the fear factor in the market. This week earnings reports are expected to be positive, but the mindset going into the next November 2nd Election and the November 2nd & 3rd FOMC may trigger a sell-mode at any point this week.

S&P 500 Emini Futures / ES
Tuesday, we may see higher trade based on earnings and a positive Consumer Sentiment. The CFRN Weekly Trade Zone of $1195 - $1196 may be seen. If any of the sentiment or reports turn lackluster to negative, we may see the CFRN Weekly Trade Zone of $1178 - $1179 and possibly $1170 - $1171. I would be prepared for the latter.

Do what you can with what you have, where you are. 
Theodore Roosevelt

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