from the trading desk of CFRN...
Are the bulls taking cues from the Euro Zone or front running the Election? The market awaits the Election results tonight and the Federal Open Market Committee Meeting tomorrow afternoon. China is showing growth and the Euro-Zone is improving via factory data and manufacturing pace of goods Produced. We also look to US Factory Orders and US ISM Manufacturing index reports due out tomorrow Morning.
Technically, the E-Mini S&P 500 climbed out of the recent top of $1193.00 to $1193.50 and after hours to $1193.75. The question is whether this is a tickler to beckon traders to buy with the strength shown in the E-Mini S&P 500 or is it only to be slammed down tomorrow in anticipation of the FOMC and the results of the Election. Mid-term elections can be historically bullish for the stock market. The potential change in the house may beconstrued as positive for the economy in terms of addressing our debt and pulling the purse strings tighter.
The fact of the matter is we have an enormous government that we support through our taxes. If our recovery could grow as our government has, we may find solutions. The Election results may cause that knee jerk reaction in the markets and we may see a volatile day, but the issues are the same and the solutions may be slow in coming regardless of who has the house. The Federal Open Market Committee may just repeat what they have said previously. They may say that they may or are prepared to add stimulus, but it is up to them as far as when and how much. So are we really looking for an answer from our government or the Feds. I believe that the market will trade according to the trader sentiment and interpretation of the Election and the Fed action.
Today’s range was $1193.00 - $1180.75. Our CFRN Weekly Trade Zones of $1188 - $1189.00 and $1184.00 – $1185.00 were the price points of today’s action.
|S&P 500 Emini Futures / ES|
Wednesday, look for price action to move across several CFRN Weekly Trade Zones. Post event trading may be erratic. Our highest Weekly Zone is $1199.00 - $1200.00. While I do not see this area in play, anything can happen.
Four things come not back: the spoken word, the spent arrow, the past, the neglected opportunity. - Omar Idn Al-Halif
Become a Member Today!
Pray Hard & Trade Safe!