Thursday, December 09, 2010

Emini Futures Trading / Emini Rollover Day


from the trading desk of CFRN...
Did anyone say Santa Claus rally? The E-Mini S&P 500 (March) showed some strength today in light of the Euro Zone debt still not quite resolved and the stronger US Dollar. Our Initial Jobless Claims came in lower by 17,000 today! Wholesale Trade was up on merchandisers stocking up for a better Christmas Season. The Federal Reserve also showed an increase in household wealth. It will be interesting to see in the next year or two how our economic recovery is viewed in comparison to the Euro Zone. We could still see ourselves trading places with the Euro Zone as our recovery still seems quite slow. The Bush tax cuts that President Obama approved could potentially stimulate recovery in the near term only to slow the future rise from debt. The US T-Bonds have been taking it on the nose as they trade lower inverse to the higher yields. We still need to take our cues from the interest-rate futures as the markets are quite sensitive to them at this juncture. It is my opinion that this fragile financial environment may be tipped at any moment as the factors remain the same, but the sentiment changes very quickly. We must also keep a wary eye on China as a recovery barometer to grasp the evolution of change within the monetary system.

On a lighter note: Jimmy Rogers, a guru in the investment community has stated that the wealth should pour into the tangibles. Hard assets, food and necessary products should increase over the coming years according to Rogers.

US Economic Reports out Friday!
US Trade Balance – 7:30 AM CST

The market broke out of the congestion pattern that we spoke of a couple of days ago. The high of the day as well as the low are clearly defined by the CFRN Weekly Trading Zones on the chart below.

S&P 500 Emini Futures - Thursday 12/09/10
S&P 500 Emini Futures - 12/05/10 thru 12/09/10

The trend is now higher for the near term as we had broke out to a new high on the March E-Mini S&P 500. $1226.50 appears to be a point of control or comfort zone for the market. Our CFRN Weekly Trading Zones are $1235 – 36, $1229 – 30, $1221 – 22 and $1215 – 16 are for tomorrows trading. We look for a potential higher day, but could experience a lower afternoon trade as many traders may not want to hold positions over the weekend.

Life is 10 percent what you make it and 90 percent how you take it. - Irving Berlin

Market Profile Numbers for 12/10/10
VAH    1227.50
POC   1225.00
VAL     1223.50

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