Tuesday, November 23, 2010

Emini Futures Trading / Safe Haven US Dollar Pressures SP Emini


from the trading desk of CFRN...

Safe-Haven appeal of the US Dollar pressures E-Mini S&P 500! The US Dollar closed up on the day as fears of the North Korean attack covered the news today! We still have the Ireland debt crisis and its rescue package fresh on the wires and this brings to mind that other countries may step forward with further debt. The Euro FX closed down .0240 on the day succumbing to the weakness of a foreign neighbor needing assistance. The US Dollar, US T-Bonds, Gold and the Bund futures in Europe all benefited from the dire circumstances while our tangible markets fell across the board. The EU has asked Ireland to adopt an austerity program to harness the spending and control the future debts of the country. All of this international news affecting our US markets. 

North Korea and South Korea had been in conflict for many years. In 1945, the Japanese Empire had ceased to rule Korea. 1950, the Korean War began with a ceasefire in 1953. There had been skirmishes, but at this time, when there is so much fear and uncertainty in the market the shelling of a South Korean Island by North Korea gave way to control by the bears today! Traders bought into the safe-haven products and sold the bounces on the E-Mini S&P 500. Each time the market tried to bounce, it only slipped more.

For our US reports today: Gross Domestic Product growth was revised up to 2.5% from 2.0%. The Existing October Home Sales fell 2.2%. This could be the result of the prohibitive lending standards from banks. Further, on the home front Federal Reserve Chairman Ben Bernanke gave a less than optimistic view of our recovery in terms of Unemployment in years to come. He summoned Congress to take steps to induce a faster recovery.

The high of the day was $1197.75, while the low was $1174.75. The CFRN Weekly Trading Zone pivot points of $1195.00 - $1196.00, $1190.00 - $1191.00 and $1182.00 - $1183.00 held.  

This week, we go into the “Thanksgiving Holiday” with some abbreviated sessions and reports shuffled around. Wednesday, we have Initial Jobless Claims, Personal Income, Advance Durable Goods and New Home Sales.

The trend remains down, but we could see more of a consolidation on Wednesday, perhaps an inside day! The bears waiting for potential selling set-ups really need this market to break $1170.00 to get any confidence behind them. $1183.00 appears to be a point of control or comfort zone for the market. Our CFRN Weekly Trading Zones are $1202.00 - $1203.00, $1195.00 - $1196.00, $1190.00 - $1191.00, and $1182.00 - $1183. If we returned to $1170.00 - $1171.00 technically the bears would take control.

Make the mistakes of yesterday your lessons for today. - Unknown 

PageTrader Calls For 11 Point Advance On Today's Show - 
Here's how the CFRN Indicator Set provided an entry...

S&P 500 Emini Futures / CFRN Indicator Set
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