Friday, December 17, 2010

Pre-Holiday Emini Market Limps Into The Close


from the trading desk of CFRN...

Limping into the closeTriple witching was a non-event and without any major economic news today the market finished the day mixed and traded inside of an 8pt range.


So I’m going to skip over the boring descriptive stuff that anybody can write and get into the predictive stuff that might point us in the right direction.  For this I always look at a chart - 

S&P 500 Emini Futures / ESH1
On a larger scale were still looking at dips as a “buying opportunity”.  Why?  The charts are still pointing higher on weekly, daily and hourly scales.  Yes, we might be overbought and the energy might not be the same as we approach or break new highs but we are posting new highs.  So the questions is, if we're buying dips, where?  Last night we noted the Weekly Trading Zone or the 1233/1234 level in the SP EMINI as a buying opportunity.  We could fine tune that and push it to the 1231/1233 level.   I know we're splitting hairs on the entry but I am trying to put the crosshairs on a level for everyone.  I might know an exact level once I see the action over the weekend and into the trading session on Monday.  Anyway you slice it, Thursday’s low or the 1227.00 level is our risk because we had some good energy off this level.  That means money management 101 and use a hard stop or you might be the one limping into the close.  I still think we will break the 1242 level and the double top on the hourly.  The break of that top will force any shorts to cover and launch us to 1246 and/or eventually to the 1251/1252 level.  Just my opinion!.


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CFRN Weekly Trading Zones / Week In Review
They say a picture's worth a thousand words. Here's a few thousand...

ESH1 / Hourly Chart

YMH1 / 30 Minute Chart

Market Profile Numbers for Monday 12/20/10
VAH -  1239.75
POC - 1237.75
VAL -  1235.75

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ps/ Thanks to Mike W. for sharing this great Nativity 2.0 video with us today.

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