Wednesday, December 08, 2010

Emini Futures And More Fundamental Jibberish


from the trading desk of CFRN...

Ohhhhh, I get by with a little help from my friends... After a weak close and a sluggish start this morning, SP EMINI finished the day in the green.  The breadth was mixed leading to the sideways action to higher close today.  Financial stocks saved the day while energy and metal stocks weighed on the complex.  What were the headliners today? With no economic data the focus was on the implications of the supposed tax deal and its impact on an already rising deficit and interest rates.  Rates have been pushing higher meaning the Bond and Note prices have been dropping. The word on the street, an extension of the tax cuts may suggest that there will not be a QE3.  Are you confused yet? no wonder this market is trading sideways the fundamental jibberish out there is confusing.  Im confused just writing this.  This is a good reason why I look at charts to make a trading decision.


Yesterday was a failed rally attempt and offered an early "sell opportunity" against the the 1229/1230 WTZ.  We got close with the first hour high being 1228.75 in the DEC SP EMINI. However with the close today the bulls are back in charge with the close above the hourly "coil".  So, will look for higher prices in the short term.  If we dont get ahead of ourselves tonight then look for modest pullbacks against 1222/1221 Weekly Trading Zones.  The expectations to the upside would be another test of the 1235/1236 WTZ or 1239/1241 level which is a .618% retracement from the 2007 highs to the March 2009 lows.

People acting together as a group can accomplish things which no individual acting alone could ever hope to bring about. Franklin D. Roosevelt

Market Profile Numbers for 12/09/10
VAH    1227.50
POC    1225.00
VAL     1223.00
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