Monday, November 08, 2010

Emini Futures Trading / Sideways Is A Direction


from the trading desk of CFRN...  
Sideways is a direction! The E-Mini S&P 500 hit a high of $1222.25 in today’s trading, under our potential cap of $1225.00. The low of the day was $1214.75 giving us a smaller range in line with our expectations going into a report free day. The effects of the Euro Zone should not be overlooked. Ireland’s woes and the other debt ridden countries may spur our US Dollar higher. The US Dollar seems to be center stage as the economic drama leaves investors waiting for the next scene to unfold. The US Dollar may have initially gotten a bounce from short-covering, but the continuation of the move will be a result of concerns for the Euro Zone. Much of our direction may come from the next G20 meeting in South Korea the latter part of this week as it should give us the script or plot of the production. They seem to have an outlined agenda as a coordinated effort which is key in transforming our economic duress into a reform agenda that works.

There were some gains in technology stocks among mixed reports. Volume seemed light.

Tomorrow, we look forward to Wholesale Trade at 7:30 CST AM. We also look to see if the market takes out our “alleged” cap of $1225.00 to climb higher or to revisit old territory.

S&P 500 Emini Futures / ES

The trend remains up, but traders await direction from the US Dollar. A stronger dollar could pressure many of the tangible markets such as the E-Mini S&P 500, the Metals and Energies. $1218.00 still 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 $1227.00, $1231.00 - $1232.00. If we stay capped, our CFRN Weekly Trade Zones are $1219.00 - $1220.00, $1215.00, $1207.00 - $1208.00. Any momentum could take us back to CFRN’s Weekly Trade Zone of $1195.00 - $1196.00.

While we may expect a quiet day, speculation regarding our US Dollar and further pressure on President Obama could weigh on the stock indices. Veteran’s Day on Thursday leaves traders without interest rate futures for allocations that could lighten trading or may in fact create moves for the markets that could be erratic.

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