Thursday, October 28, 2010

Emini Futures Trading / US Dollar Lower


from the trading desk of CFRN... 
When in doubt, sit it out? That may be the mantra of many traders today. The Initial Jobless Claims actually came in better than expected falling 21,000 to 434,000. This was about the best number in the last 2 years. The high of today in the E-Mini S&P 500 of $1187.50 was reached at 7:30 AM CST, but by 11:30 AM CST, we descended to the low of the day at $1173.50.

After the first couple of hours, we saw coiling and a pretty choppy session. Emphasis is still on the Election and the FOMC with the buzz reflecting sentiment about the potential Election results and the Fed’s next move. It is my thought that in such a fragile time frame, that the Fed may walk softly and want to alleviate fears of any severe change. It may be after the impact of the two events that ideas or rumors in fact create more of a stir in the marketplace the latter part of next week.

The US Dollar traded lower on the day creating a question mark regarding its typical inverse relationship with the E-Mini S&P 500. We traded within the CFRN Weekly Trade Zones of $1185 - $1186 and $1178 - $1179 today.

Tomorrow, we look forward to the GDP numbers which consists of 70% consumer spending. It will be interesting to potentially see a positive report with so many citizens still out of work. The market may still shrug off any positive report to focus on the events of next week. We may see lower volume that could cause more erratic moves in the market. 

S&P 500 Emini Futures / ES
Tomorrow, we look forward to CFRN Weekly Trade Zones of $1185 – $1186, $1178 - $1179, $1170 - $1171 and $1162 - $1163. Essentially, we look for more severe but short extensions during the trading day. I would look to a point of control or comfort zone of this market at our CFRN Weekly Trade Zone of $1178 - $1179. Reason again to enjoy learning how to take smaller profits in the E-Mini S&P 500 while enjoying a nurturing atmosphere to put balance and clarity back in your trading... Join us at

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