Wednesday, November 17, 2010

Emini Futures Trading / Inside Day


from the trading desk of CFRN... 

Standing aside “is” a position in that it can help with cash preservation during choppy trading or coiling market conditions. Today had been an “inside day” in that the range was $1182.00 - $1173.25 (a range smaller than that of the previous days session). Our CFRN Weekly Trade Zones of $1181.00 - $1182.00 were covered in today’s session.

Our US Economic Reports were: US October CPI rose .2%. US October Real Earnings for all private workers were +.3%. Housing Starts fell 11.7% to a 1 ½ year low. The reports certainly seem to support further stimulus by the Federal Reserve. White House spokesman Robert Gibbs stated that Europe has the ability to deal with recent debt woes as with Ireland, Greece and Portugal. While giving an optimistic slant to the crisis situation, we still have concerns on the next shoe to drop.

The US Dollar Index had an inside day closing slightly lower on the day! The Euro Zone ministers are putting together a plan to bail out Ireland’s banking sector that includes the IMF. Dublin has been slow to request the aid. If we should get resolution on the sovereign debt crisis, the Euro FX may bounce and the US Dollar may weaken. This could potentially create a bounce in the E-Mini S&P 500. It is amazing how in touch with our Euro neighbors we are during these times. Should we find further insolvency problems, the E-Mini S&P 500 may yet have a bit of a washout.

Tomorrow, we look to our Initial Jobless Claims for US Economic Reports.

The trend remains down, but we could get a little bounce as today was lackluster and the market paused from it’s decline. Failure to ascend to the $1219.00 level may be construed as technically weak; hence, we may continue our downslide later in the week. $1178.50 appears to be a point of control or comfort zone for the market. Should we breach the $1225.00 zone, our CFRN Weekly Trade Zone gives us $1231.00 - $1232.00. If we stay capped, our CFRN Weekly Trade Zones are $1215.00 - $1216.00, $1205.00, $1206.00. We may find the CFRN Weekly Trade Zone $1199.00 - $1198.00, $1187.00 - $1188.00 and $1181.00 - $1182.00. In This type of retracement, we may find ourselves back at CFRN’s Weekly Trade Zone $1163.00 - $1164.00 or further. A consolidation or pennant in this area would not surprise me!

Create a definite plan for carrying out your desire and begin at once, whether you are ready or not, to put this plan into action. - Napoleon Hill

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