By Mike Reed
The “1-2-3 Top” that you will read about below is one of the many trade set ups that I personally developed and use in my own trading.
(Watch video of “1-2-3 Top”)
The 1-2-3 Top is a powerful setup in which the second move towards the top falls short of a double top. The 1-2-3 Top is very close to the same pattern as the "second chance entry." However, it differs from the second chance entry by being the actual top or bottom of the day (to that point in the trading day, of course).
For labeling a 1-2-3 top, the #1 point is the new high for the day. The #2 point is the first pullback low from that new high for the day. The #3 point is the bounce back high off of point #2, which is a lower high than at the #1 point. The 3 “points” on the chart will be clearer after you see the video.
This is a pattern that sets up reversals, so we are looking for a clue that the reversal will begin from that #3 point. When the top at #1 comes at (or near) fixed resistance zone listed in my nightly update, it strengthens the odds of the setup. Since the resistance was rejected once already, and caused a pullback, a bounce to that area is one reason for entry, using an initial hard stop just above the high for the day.
If the #3 point is NOT at fixed resistance area, but there is a bounce back to just under the high of the day without a Tick extreme (+1000 or higher), wait until the price curls over from the #3 position, or falls fast and pulls back a little. That is entering after some “proof” that there is a potential intra-day top in place.
A third way to enter is to use a “trigger” which also gives some proof of a turn. The “official trigger” that an intra-day top should be in place is a break of the #2 point. However, waiting for that doesn’t always give a good entry. To fine-tune the “trigger” entry, I use a break below the low of the point #3 high bar. This can be done on the 5 minute chart, however for this setup I will use the bars on a 2 minute chart for the “trigger” entry.
When you enter on a curl top from point #3, or use a “trigger” or use a pullback toward the second top, your "risk" (the money at risk, not the odds on the trade) isn't as good as an anticipation entry. An anticipation entry would get you short very near the top at point 3, while the other entry techniques would have you short at a lower price. Your initial hard stop is further from your entry, risking more money on the setup.
On the other hand, the following all make the trade a higher-probability entry than the anticipation entry: A) entries on a "down curl from 3" B) a pullback toward #3 or C) using a “trigger” on the 2 minute chart.
If you take the curl entry (after point 3) and the market just sits there, get out immediately and take another look. Don't sit and hope, no matter how good you feel about the setup. This will give you a fresh look without your capital being on the line.
Time in the market equals risk exposure. Staying out of the market when conditions aren't favorable is an important way to reduce the overall risk of trading. If a setup pattern re-establishes itself, then a second entry can be taken.
Here is a 1-2-3 Top that I captured live on audio/visual. I'm "walking" you through this set up as it develops:
http://tradestalker.com/123/
(please give it a couple of seconds to start playing)
Good Trading,
Mike Reed
This publication's primary focus is trading the index futures. However, you can also use my nightly updates to trade the following ETF's (SPY), (QQQQ), (SDS), (QID),(DIA), and (DOG).
Sunday, December 28, 2008
Wednesday, December 17, 2008
TradeStalker's RBI Update 12/16/08-ADDITION
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 8:50 pm eastern time, 12/16/2008
After another look at the charts and my
indicators, it still looks like an early pop
to the end of day high areas would be a
great shorting opportunity. On the downside,
if the 906.50 level is broken early, then the
904.00 level will likely be broken as a top
could be in place. Shorting a bounce would
be in order then, as the ES could go for the
899.75-898.75 area quite easily.
However, if a drop does hold at/above that
906.50 level and reverse, then the upside
momentum will still be intact. IF the market
easily gets through the 915 level, and there
is a good rally that takes the ES to the
926.75-928.00 zone and that area is rejected,
it would set up a good odds short with a fairly
tight stop.
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
TradeStalker's
R.B.I. Trader's Update
12 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 8:50 pm eastern time, 12/16/2008
After another look at the charts and my
indicators, it still looks like an early pop
to the end of day high areas would be a
great shorting opportunity. On the downside,
if the 906.50 level is broken early, then the
904.00 level will likely be broken as a top
could be in place. Shorting a bounce would
be in order then, as the ES could go for the
899.75-898.75 area quite easily.
However, if a drop does hold at/above that
906.50 level and reverse, then the upside
momentum will still be intact. IF the market
easily gets through the 915 level, and there
is a good rally that takes the ES to the
926.75-928.00 zone and that area is rejected,
it would set up a good odds short with a fairly
tight stop.
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
TradeStalker's RBI Update 12/16/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 6:58 pm eastern time, 12/16/2008
The market opened higher on Tuesday, but the early strength
reversed after getting just over the 884.00-884.50
resistance on the ES and it backed off from 885.25 to test
the opening low. The 877.25 level was bought and the market
went back to token higher highs before the Fed release.
After the release the ES popped to the 893-894 zone and
quickly dropped back to 885.50 and then turned back up. The
900 level was rejected on the first good run-up, and the ES
dropped to 887.00 and again reversed back up. The ES
sprinted to the 912.50-913.50 and that move lost juice and
brought in a pullback to the 904.00 level. Another turn back
up took the averages back to test the highs with the ES
getting to 915.00 before backing off into the close.
The market put together a good rally that finally stuck on
Tuesday. In the process, a few indicators jumped into
overbought territory. It is not across the board extremes
like we have seen before some of the bigger drops recently,
but the market could have a bit of trouble holding on to
gains on Wednesday. We will likely see some two-sided
action, but as long as the pullbacks are well contained, the
ES could be heading for the 926.75-928.00 area for the first
big test of the market's strength. If the ES gets up there,
and then the move reverses, it could set up a fairly sharp
drop. In fact, if we get there all everything lines up, it
could be an end to this rally off of the lows and set up a
January drop. We'll see if that shapes up or not fairly soon
it appears.
On Wednesday look for a shorting opportunity if there is an
early pop up to the initial resistance areas and the move
reverses. If that plays out in the early going, beware that
the first decent pullback should set up a good buying
opportunity. It looks like a drop could go as far as the
899.75-898.75 area before any real damage occurs. If there
is a drop to that area on Wednesday, it will need to be
quickly reversed, otherwise a short term high could be in
place.
The initial resistance is at the 914.50-915.00 area on the
SP futures and 1247.50-1248.75 area on the Nasdaq futures.
If the market doesn't hesitate there and keeps on going on
the upside, then a move towards the 919.25-920.00 area on
the SP futures and 1252.50-1254.00 area on the Nasdaq
futures could be in the works. If the market gets up there,
and the move reverses, it should offer a good shorting
opportunity. If those areas do not cause a reaction, and are
exceeded, then the 926.75-928.00 area on the SP futures and
1261.50-1263.50 area on the Nasdaq futures would be key
areas on Wednesday. A reversal from that zone could be the
start of another sizable leg on the downside. However, if
those are not a problem, then a move to the 934.50-935.00
area on the SP futures and 1270.50-1272.00 area on the
Nasdaq futures is probably in the cards. If the market gets
wings and the upside gets a head of steam, then a rally
towards the 949.50-950.50 area on the SP futures [9248-9254]
and 1300.50-1302.00 area on the Nasdaq futures is possible.
The initial support is at the 904.50-904.00 area on the SP
futures and 1231.50-1230.50 area on the Nasdaq futures. If
the market pulls back there early on Wednesday, and the
market turns back up, it should be a gift on the long side.
If the market drops down there and can not turn back up,
then a pullback to the 899.75-898.75 area on the SP futures
and 1228.50-1227.50 area on the Nasdaq futures will need to
hold. If those areas are not defended, then the 892.25-
892.50 area on the SP futures and 1218.75-1217.50 area on
the Nasdaq futures could be in the cards. If the market
doesn't turn around from there, then key support is at the
885.75-884.75 area on the SP futures and 1213.50-1212.50
area on the Nasdaq futures. A pullback should not break
those areas. If it is broken, then it look like the 880.25-
879.75 area on the SP futures would need to hold, otherwise
the market is back in the trading range and in some trouble.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
914.50-915.00
919.25-920.00
926.75-928.00
934.50-935.00
949.50-950.50
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
904.50-904.00
899.75-898.75
892.25-892.50
885.75-884.75
880.25-879.75
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1247.50-1248.75
1252.50-1254.00
1261.50-1263.50
1270.50-1272.00
1300.50-1302.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1231.50-1230.50
1228.50-1227.50
1218.75-1217.50
1213.50-1212.50
March 2009 Dow futures resistance
symbols: emini = ymh9
8932-8938
9000-9005
9074-9080
9118-9122
9248-9254
March 2009 Dow futures support
symbols: emini = ymh9
8852-8847
8811-8804
8744-8739
8674-8666
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 16 / 2008
(Published Since 1996)
...............................................
Dateline: 6:58 pm eastern time, 12/16/2008
The market opened higher on Tuesday, but the early strength
reversed after getting just over the 884.00-884.50
resistance on the ES and it backed off from 885.25 to test
the opening low. The 877.25 level was bought and the market
went back to token higher highs before the Fed release.
After the release the ES popped to the 893-894 zone and
quickly dropped back to 885.50 and then turned back up. The
900 level was rejected on the first good run-up, and the ES
dropped to 887.00 and again reversed back up. The ES
sprinted to the 912.50-913.50 and that move lost juice and
brought in a pullback to the 904.00 level. Another turn back
up took the averages back to test the highs with the ES
getting to 915.00 before backing off into the close.
The market put together a good rally that finally stuck on
Tuesday. In the process, a few indicators jumped into
overbought territory. It is not across the board extremes
like we have seen before some of the bigger drops recently,
but the market could have a bit of trouble holding on to
gains on Wednesday. We will likely see some two-sided
action, but as long as the pullbacks are well contained, the
ES could be heading for the 926.75-928.00 area for the first
big test of the market's strength. If the ES gets up there,
and then the move reverses, it could set up a fairly sharp
drop. In fact, if we get there all everything lines up, it
could be an end to this rally off of the lows and set up a
January drop. We'll see if that shapes up or not fairly soon
it appears.
On Wednesday look for a shorting opportunity if there is an
early pop up to the initial resistance areas and the move
reverses. If that plays out in the early going, beware that
the first decent pullback should set up a good buying
opportunity. It looks like a drop could go as far as the
899.75-898.75 area before any real damage occurs. If there
is a drop to that area on Wednesday, it will need to be
quickly reversed, otherwise a short term high could be in
place.
The initial resistance is at the 914.50-915.00 area on the
SP futures and 1247.50-1248.75 area on the Nasdaq futures.
If the market doesn't hesitate there and keeps on going on
the upside, then a move towards the 919.25-920.00 area on
the SP futures and 1252.50-1254.00 area on the Nasdaq
futures could be in the works. If the market gets up there,
and the move reverses, it should offer a good shorting
opportunity. If those areas do not cause a reaction, and are
exceeded, then the 926.75-928.00 area on the SP futures and
1261.50-1263.50 area on the Nasdaq futures would be key
areas on Wednesday. A reversal from that zone could be the
start of another sizable leg on the downside. However, if
those are not a problem, then a move to the 934.50-935.00
area on the SP futures and 1270.50-1272.00 area on the
Nasdaq futures is probably in the cards. If the market gets
wings and the upside gets a head of steam, then a rally
towards the 949.50-950.50 area on the SP futures [9248-9254]
and 1300.50-1302.00 area on the Nasdaq futures is possible.
The initial support is at the 904.50-904.00 area on the SP
futures and 1231.50-1230.50 area on the Nasdaq futures. If
the market pulls back there early on Wednesday, and the
market turns back up, it should be a gift on the long side.
If the market drops down there and can not turn back up,
then a pullback to the 899.75-898.75 area on the SP futures
and 1228.50-1227.50 area on the Nasdaq futures will need to
hold. If those areas are not defended, then the 892.25-
892.50 area on the SP futures and 1218.75-1217.50 area on
the Nasdaq futures could be in the cards. If the market
doesn't turn around from there, then key support is at the
885.75-884.75 area on the SP futures and 1213.50-1212.50
area on the Nasdaq futures. A pullback should not break
those areas. If it is broken, then it look like the 880.25-
879.75 area on the SP futures would need to hold, otherwise
the market is back in the trading range and in some trouble.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
914.50-915.00
919.25-920.00
926.75-928.00
934.50-935.00
949.50-950.50
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
904.50-904.00
899.75-898.75
892.25-892.50
885.75-884.75
880.25-879.75
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1247.50-1248.75
1252.50-1254.00
1261.50-1263.50
1270.50-1272.00
1300.50-1302.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1231.50-1230.50
1228.50-1227.50
1218.75-1217.50
1213.50-1212.50
March 2009 Dow futures resistance
symbols: emini = ymh9
8932-8938
9000-9005
9074-9080
9118-9122
9248-9254
March 2009 Dow futures support
symbols: emini = ymh9
8852-8847
8811-8804
8744-8739
8674-8666
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Monday, December 15, 2008
TradeStalker's RBI Update 12/15/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 15 / 2008
(Published Since 1996)
...............................................
Dateline: 6:38 pm eastern time, 12/15/2008
A flat open was sold on Monday and the SP futures dropped
from 885.75 to 863.50 before getting turned around. The
bounce formed a rising wedge on the intraday charts and when
the move fizzled and reversed from the updated 873-874 area
(873.75 bounce high), the market sold off fairly hard. The
SP futures fell to 861.00, just over the 860.50-860.00
support area and then bounced back. The bounce fizzled and
reversed from 870.75 and then dropped to 856.25 on the SP
futures. That was 3 ticks above the 855.50-855.00 support
zone and the market turned back up. The sprint took the SP
futures to 874.25 and they reversed again, but the pullback
held 865.00 and then the SP futures went back to the 873-874
zone at the close.
On Tuesday we get the Fed decision on interest rate policy,
and any reaction will come from the statement that is made.
The VIX jumped up on Monday, so a pick-up in volatility is
implied. We also got a sell signal from the VIX on Monday,
however most all of the other indicators are in neutral
territory now. The jump by the VIX could set the stage for
sharp moves in both directions on Tuesday.
The day ended with uptrends on Monday. Look for early
strength to fizzle to set up a shorting opportunity. If that
plays out, then a pullback should hold the initial support
areas on a pullback to keep the market from rolling back
over. If a pullback can hold and turn up from that area on
Tuesday, then it will set up a buying opportunity. If there
is no early back-and-forth action to set up those
opportunities, and instead there is a trending move into the
2 pm timeframe (just before the Fed release at 2:15 pm
eastern time) then a reversal is high odds. In any case,
after the release there tends to be about 20 minutes of
quick ups and downs, and then the market should get into a
directional move that lasts into the very late trading. That
is usually worth the wait.
The first resistance on Tuesday is at the 873.50-874.50 area
on the SP futures and the 1195.50-1197.00 area on the Nasdaq
futures. If those are not rejected again, then we could see
a run up towards the 884.00-884.50 area on the SP futures
and the 1209.50-1210.75 area on the Nasdaq futures. If the
market gets up there and the move fizzles, it should offer a
good shorting opportunity. However, if those areas are
easily cut through, it will open the door for a move to the
887.50-888.00 area on the SP futures and the 1216.50-1217.50
area on the Nasdaq futures, and possibly up to the 894.00-
894.75 area on the SP futures and the 1221.25-1222.50 area
on the Nasdaq futures. If the market gets up there and
doesn't reverse, then the 903.50-904.50 area on the SP
futures and the 1238.00-1239.00 area on the Nasdaq futures
will be next. A break of those areas then would open the
door for a push to the 907.25-908.25 area on the SP futures
and the 1243.50-1244.50 area on the Nasdaq futures. If there
is a strong rally, then the 912.50-913.50 area on the SP
futures and the 1252.50-1254.00 area on the Nasdaq futures
are the key resistance areas on Tuesday. If those are
exceeded, then we could see the 928 area on the SP futures
on this leg up.
The initial support is at the 865.50-865.00 area on the SP
futures and the 1181.50-1180.50 area on the Nasdaq futures.
As long as those areas are not broken, then the trends will
still be up. If buyers keep their hands in their pockets,
then a drop towards the 856.00-855.00 area on the SP futures
and the 1169.00-1168.00 area on the Nasdaq futures will need
to hold, or quickly reverse if broken. If that area is not
respected, and brings in buying/ short covering, then a drop
towards the 846.50-846.00 area on the SP futures and the
1157.50-1156.75 area on the Nasdaq futures could be in the
works. A move to those areas would need to quickly reverse,
otherwise the downside could pick up some pace and we could
go down towards the 838.00-837.50 area on the SP futures and
the 1150.25-1149.50 area on the Nasdaq futures. Those should
hold if the market gets hit with a hard selloff. However, if
those do not hold, then we could drop towards the 830.25-
828.75 area on the SP futures and the 1140.25-1138.25 area
on the Nasdaq futures. If the day gets ugly, the major
support is at the 817-816 area on the SP futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
873.50-874.50
884.00-884.50
887.50-888.00
894.00-894.75
903.50-904.50
907.25-908.25
912.50-913.50
928
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
865.50-865.00
856.00-855.00
846.50-846.00
838.00-837.50
830.25-828.75
817-816
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1195.50-1197.00
1209.50-1210.75
1216.50-1217.50
1221.25-1222.50
1238.00-1239.00
1243.50-1244.50
1252.50-1254.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1181.50-1180.50
1169.00-1168.00
1157.50-1156.75
1150.25-1149.50
1140.25-1138.25
March 2009 Dow futures resistance
symbols: emini = ymh9
8600-8604
8662-8667
8698-8703
8728-8734
8790-8795
8850-8857
8930-8936
March 2009 Dow futures support
symbols: emini = ymh9
8519-8514
8446-8441
8386-8381
8302-8298
8248-8241
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 15 / 2008
(Published Since 1996)
...............................................
Dateline: 6:38 pm eastern time, 12/15/2008
A flat open was sold on Monday and the SP futures dropped
from 885.75 to 863.50 before getting turned around. The
bounce formed a rising wedge on the intraday charts and when
the move fizzled and reversed from the updated 873-874 area
(873.75 bounce high), the market sold off fairly hard. The
SP futures fell to 861.00, just over the 860.50-860.00
support area and then bounced back. The bounce fizzled and
reversed from 870.75 and then dropped to 856.25 on the SP
futures. That was 3 ticks above the 855.50-855.00 support
zone and the market turned back up. The sprint took the SP
futures to 874.25 and they reversed again, but the pullback
held 865.00 and then the SP futures went back to the 873-874
zone at the close.
On Tuesday we get the Fed decision on interest rate policy,
and any reaction will come from the statement that is made.
The VIX jumped up on Monday, so a pick-up in volatility is
implied. We also got a sell signal from the VIX on Monday,
however most all of the other indicators are in neutral
territory now. The jump by the VIX could set the stage for
sharp moves in both directions on Tuesday.
The day ended with uptrends on Monday. Look for early
strength to fizzle to set up a shorting opportunity. If that
plays out, then a pullback should hold the initial support
areas on a pullback to keep the market from rolling back
over. If a pullback can hold and turn up from that area on
Tuesday, then it will set up a buying opportunity. If there
is no early back-and-forth action to set up those
opportunities, and instead there is a trending move into the
2 pm timeframe (just before the Fed release at 2:15 pm
eastern time) then a reversal is high odds. In any case,
after the release there tends to be about 20 minutes of
quick ups and downs, and then the market should get into a
directional move that lasts into the very late trading. That
is usually worth the wait.
The first resistance on Tuesday is at the 873.50-874.50 area
on the SP futures and the 1195.50-1197.00 area on the Nasdaq
futures. If those are not rejected again, then we could see
a run up towards the 884.00-884.50 area on the SP futures
and the 1209.50-1210.75 area on the Nasdaq futures. If the
market gets up there and the move fizzles, it should offer a
good shorting opportunity. However, if those areas are
easily cut through, it will open the door for a move to the
887.50-888.00 area on the SP futures and the 1216.50-1217.50
area on the Nasdaq futures, and possibly up to the 894.00-
894.75 area on the SP futures and the 1221.25-1222.50 area
on the Nasdaq futures. If the market gets up there and
doesn't reverse, then the 903.50-904.50 area on the SP
futures and the 1238.00-1239.00 area on the Nasdaq futures
will be next. A break of those areas then would open the
door for a push to the 907.25-908.25 area on the SP futures
and the 1243.50-1244.50 area on the Nasdaq futures. If there
is a strong rally, then the 912.50-913.50 area on the SP
futures and the 1252.50-1254.00 area on the Nasdaq futures
are the key resistance areas on Tuesday. If those are
exceeded, then we could see the 928 area on the SP futures
on this leg up.
The initial support is at the 865.50-865.00 area on the SP
futures and the 1181.50-1180.50 area on the Nasdaq futures.
As long as those areas are not broken, then the trends will
still be up. If buyers keep their hands in their pockets,
then a drop towards the 856.00-855.00 area on the SP futures
and the 1169.00-1168.00 area on the Nasdaq futures will need
to hold, or quickly reverse if broken. If that area is not
respected, and brings in buying/ short covering, then a drop
towards the 846.50-846.00 area on the SP futures and the
1157.50-1156.75 area on the Nasdaq futures could be in the
works. A move to those areas would need to quickly reverse,
otherwise the downside could pick up some pace and we could
go down towards the 838.00-837.50 area on the SP futures and
the 1150.25-1149.50 area on the Nasdaq futures. Those should
hold if the market gets hit with a hard selloff. However, if
those do not hold, then we could drop towards the 830.25-
828.75 area on the SP futures and the 1140.25-1138.25 area
on the Nasdaq futures. If the day gets ugly, the major
support is at the 817-816 area on the SP futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
873.50-874.50
884.00-884.50
887.50-888.00
894.00-894.75
903.50-904.50
907.25-908.25
912.50-913.50
928
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
865.50-865.00
856.00-855.00
846.50-846.00
838.00-837.50
830.25-828.75
817-816
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1195.50-1197.00
1209.50-1210.75
1216.50-1217.50
1221.25-1222.50
1238.00-1239.00
1243.50-1244.50
1252.50-1254.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1181.50-1180.50
1169.00-1168.00
1157.50-1156.75
1150.25-1149.50
1140.25-1138.25
March 2009 Dow futures resistance
symbols: emini = ymh9
8600-8604
8662-8667
8698-8703
8728-8734
8790-8795
8850-8857
8930-8936
March 2009 Dow futures support
symbols: emini = ymh9
8519-8514
8446-8441
8386-8381
8302-8298
8248-8241
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's RBI Update 12/14/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 14 / 2008
(Published Since 1996)
...............................................
Dateline: 5:17 pm eastern time, 12/14/2008
On the heels of a nose-dive on Thursday afternoon, and more
bad news, the market gapped down on Friday and then quickly
reversed back to the upside. The SP futures ran up from
846.00 to the 867.50 Thursday low, and then pulled back to
855.25 before reversing again and turning back up. A run to
the old gap area at 879.50-880.00 area was rejected, and a
drop to 860.75 followed. The action was very erratic, but
the market caught a decent bid in the afternoon. A rally to
883.00 was followed by a drop to 869.00, but the market
turned back up and closed at the highs for the day.
The market gets knocked down and then comes right back
lately. The ranges aren't as huge as they were a few weeks
ago, as the market works on finding a bottom. The daily
chart is forming a bit of a rising wedge/channel and the
intraday pattern on Friday is similar. The market has good
buying at lower levels, but the rallies into the 900-teens
have been difficult lately. It looks like another leg on the
upside is underway, as long as the initial support isn't
broken and held on Monday. If we get another leg up, the
highs from last week will become key. If the market rallies
back towards those highs, but falls shy and reverses, then
another decent sized leg on the downside could be underway.
We will see how the indicators look when/if the market gets
back up there.
The trends were up into the close on Friday. So, on Monday
look for the "sell early, buy the first decent pullback"
type of pattern in the early going. If there is a pop up
open, and the move stalls/reverses in the first 20-40
minutes of trading, it should set up a good shorting
opportunity. If that plays out, beware that the first
pullback will set up a buying opportunity as soon as the
downside momentum stalls and the market begins to turn back
up.
The initial resistance is at the 887.50-888.00 area on the
SP futures and the 1216.50-1217.50 area on the Nasdaq
futures. If those areas are not a problem, then the big
hurdles would be at the 894.00-894.75 area on the SP futures
and the 1221.25-1222.50 area on the Nasdaq futures. If the
market gets up there, and the move stalls out, beware of a
reversal. If that doesn't set up, and the market cuts
through those zones, then the next hurdles are at the
903.50-904.50 area on the SP futures and the 1238.00-1239.00
area on the Nasdaq futures. If the market doesn't reject
those zones, then the 907.25-908.25 area on the SP futures
and the 1243.50-1244.50 area on the Nasdaq futures would be
next. If the market has a good day on the up side, then we
could see a test the 912.50-913.50 area on the SP futures
and the 1252.50-1254.00 area on the Nasdaq futures.
The initial support is at the 869.50-869.00 area on the SP
futures and the 1198.75-1198.00 area on the Nasdaq futures.
That area should be pivotal. As long as the market is bought
at or above those areas, then the upside is intact. If those
are broken, and not quickly reversed, then a push down to
the 860.50-860.00 area on the SP futures and the 1188.00-
1187.00 area on the Nasdaq futures will need to hold. If
those are broken, then the wedge pattern is broken and the
855.50-855.00 area on the SP futures and the 1176.75-1176.00
area on the Nasdaq futures should be seen, at a minimum,
before a turn-around attempt occurs. If those are broken and
the market doesn't quickly reverse, then a test of the
Friday lows at the 846.00 level on the SP futures and the
1156.75 level on the Nasdaq futures could be in the cards.
If the market gets back down there, and cannot pass the test
and turn back up, then there is trouble brewing. The next
good support would be near the 838.00-837.50 area on the SP
futures and the 1150.25-1149.50 area on the Nasdaq futures.
Major support would be at the 830.25-828.75 area on the SP
futures and the 1140.25-1138.25 area on the Nasdaq futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
887.50-888.00
894.00-894.75
903.50-904.50
907.25-908.25
912.50-913.50
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
869.50-869.00
860.50-860.00
855.50-855.00
846.00
838.00-837.50
830.25-828.75
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1216.50-1217.50
1221.25-1222.50
1238.00-1239.00
1243.50-1244.50
1252.50-1254.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1198.75-1198.00
1188.00-1187.00
1176.75-1176.00
1156.75
1150.25-1149.50
1140.25-1138.25
March 2009 Dow futures resistance
symbols: emini = ymh9
8698-8703
8728-8734
8790-8795
8850-8857
8930-8936
March 2009 Dow futures support
symbols: emini = ymh9
8531-8525
8450-8446
8388-8381
8287
8202-8198
8128-8122
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 14 / 2008
(Published Since 1996)
...............................................
Dateline: 5:17 pm eastern time, 12/14/2008
On the heels of a nose-dive on Thursday afternoon, and more
bad news, the market gapped down on Friday and then quickly
reversed back to the upside. The SP futures ran up from
846.00 to the 867.50 Thursday low, and then pulled back to
855.25 before reversing again and turning back up. A run to
the old gap area at 879.50-880.00 area was rejected, and a
drop to 860.75 followed. The action was very erratic, but
the market caught a decent bid in the afternoon. A rally to
883.00 was followed by a drop to 869.00, but the market
turned back up and closed at the highs for the day.
The market gets knocked down and then comes right back
lately. The ranges aren't as huge as they were a few weeks
ago, as the market works on finding a bottom. The daily
chart is forming a bit of a rising wedge/channel and the
intraday pattern on Friday is similar. The market has good
buying at lower levels, but the rallies into the 900-teens
have been difficult lately. It looks like another leg on the
upside is underway, as long as the initial support isn't
broken and held on Monday. If we get another leg up, the
highs from last week will become key. If the market rallies
back towards those highs, but falls shy and reverses, then
another decent sized leg on the downside could be underway.
We will see how the indicators look when/if the market gets
back up there.
The trends were up into the close on Friday. So, on Monday
look for the "sell early, buy the first decent pullback"
type of pattern in the early going. If there is a pop up
open, and the move stalls/reverses in the first 20-40
minutes of trading, it should set up a good shorting
opportunity. If that plays out, beware that the first
pullback will set up a buying opportunity as soon as the
downside momentum stalls and the market begins to turn back
up.
The initial resistance is at the 887.50-888.00 area on the
SP futures and the 1216.50-1217.50 area on the Nasdaq
futures. If those areas are not a problem, then the big
hurdles would be at the 894.00-894.75 area on the SP futures
and the 1221.25-1222.50 area on the Nasdaq futures. If the
market gets up there, and the move stalls out, beware of a
reversal. If that doesn't set up, and the market cuts
through those zones, then the next hurdles are at the
903.50-904.50 area on the SP futures and the 1238.00-1239.00
area on the Nasdaq futures. If the market doesn't reject
those zones, then the 907.25-908.25 area on the SP futures
and the 1243.50-1244.50 area on the Nasdaq futures would be
next. If the market has a good day on the up side, then we
could see a test the 912.50-913.50 area on the SP futures
and the 1252.50-1254.00 area on the Nasdaq futures.
The initial support is at the 869.50-869.00 area on the SP
futures and the 1198.75-1198.00 area on the Nasdaq futures.
That area should be pivotal. As long as the market is bought
at or above those areas, then the upside is intact. If those
are broken, and not quickly reversed, then a push down to
the 860.50-860.00 area on the SP futures and the 1188.00-
1187.00 area on the Nasdaq futures will need to hold. If
those are broken, then the wedge pattern is broken and the
855.50-855.00 area on the SP futures and the 1176.75-1176.00
area on the Nasdaq futures should be seen, at a minimum,
before a turn-around attempt occurs. If those are broken and
the market doesn't quickly reverse, then a test of the
Friday lows at the 846.00 level on the SP futures and the
1156.75 level on the Nasdaq futures could be in the cards.
If the market gets back down there, and cannot pass the test
and turn back up, then there is trouble brewing. The next
good support would be near the 838.00-837.50 area on the SP
futures and the 1150.25-1149.50 area on the Nasdaq futures.
Major support would be at the 830.25-828.75 area on the SP
futures and the 1140.25-1138.25 area on the Nasdaq futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
887.50-888.00
894.00-894.75
903.50-904.50
907.25-908.25
912.50-913.50
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
869.50-869.00
860.50-860.00
855.50-855.00
846.00
838.00-837.50
830.25-828.75
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1216.50-1217.50
1221.25-1222.50
1238.00-1239.00
1243.50-1244.50
1252.50-1254.00
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1198.75-1198.00
1188.00-1187.00
1176.75-1176.00
1156.75
1150.25-1149.50
1140.25-1138.25
March 2009 Dow futures resistance
symbols: emini = ymh9
8698-8703
8728-8734
8790-8795
8850-8857
8930-8936
March 2009 Dow futures support
symbols: emini = ymh9
8531-8525
8450-8446
8388-8381
8287
8202-8198
8128-8122
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Friday, December 12, 2008
"Basic Guide to Support and Resistance Trading"
Hi Folks,
Here is the download link for my "Basic Guide to Support and
Resistance Trading". The guide is FREE...no strings attached!
To download right click the link below and choose "save as",
and decide where you want to download this pdf.
CLICK HERE TO DOWNLOAD
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN. "Basic
Guide to Support and Resistance Trading" may NOT be
redistributed in whole or in part without permission.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
Here is the download link for my "Basic Guide to Support and
Resistance Trading". The guide is FREE...no strings attached!
To download right click the link below and choose "save as",
and decide where you want to download this pdf.
CLICK HERE TO DOWNLOAD
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN. "Basic
Guide to Support and Resistance Trading" may NOT be
redistributed in whole or in part without permission.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
TradeStalker's RBI Update 12/11/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 11 / 2008
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 12/11/2008
The market opened lower on Thursday and reversed from the
884.50-884.00 zone on the SP futures and put together a
decent bounce. However, as they have been doing the last 2
days, the bounce didn't stick as the SP futures had trouble
around the 902.50-903.50 area. After rejecting that zone,
the market popped just over it and reversed and the high was
in place. The updated resistance at 898 was tested and
rejected, and the market sold off to the key 884.50-884.00
zone. There was barely a bounce off of that area and after
the bounce fizzled at 887.50, the market rolled over hard.
The SP futures fell to 867.50 before a bounce into the
close.
The bear is growling again, as the back to back inside days
on Tuesday and Wednesday along with complacent VIX lead to a
sizable selloff on Thursday. This downside should continue
for another day or so, unless the SP futures can get back
over the 893.50-894.00 area and not reverse on Friday. The
VIX reversal is a negative, as is the break of the wedge
patterns mentioned last night. A drop to the 857.00-856.00
area on the SP futures would be the next key support. Even
if the market can rebound off of that zone on Friday
morning, the first decent bounce should set up a shorting
opportunity as soon as the upside fizzles, especially if
that fizzle occurs at a resistance area.
The initial resistance is at the 876.50-877.00 area on the
SP futures and the 1189.50-1190.50 area on the Nasdaq
futures. If the market gets there and the move stalls out,
it's a great shorting opportunity. If those are broken, then
there should be good resistance near the 887.50-888.00 area
on the SP futures and the 1205.50-1206.50 area on the Nasdaq
futures. If those are somehow exceeded, then a move towards
the 893.50-894.00 area on the SP futures and the 1213.00-
1214.00 area on the Nasdaq futures should offer a very good
shorting opportunity if the market is still vulnerable. If
those are exceeded and not quickly reversed, then there is
strong resistance at the 903.50-904.50 area on the SP
futures and the 1221.25-1222.50 area on the Nasdaq futures.
If we get a strong move, it must not fail again near the
907.25-908.25 area on the SP futures and the 1230.50-1231.50
area on the Nasdaq futures or we will repeat the selloff.
The initial support is at the 867.50 level on the SP futures
and the 1175.00 level on the Nasdaq futures. If those lows
are broken, then those areas will become good resistance on
a bounce. The next support should be key, at the 857.00-
856.00 area on the SP futures and the 1166.50-1165.25 area
on the Nasdaq futures. The market must reverse from those
areas, otherwise the market could be caving in again. If
there isn't a good reversal from those areas, then the
844.50-842.00 area on the SP futures and the 1155.50-1152.00
area on the Nasdaq futures could be in the cards. If those
do not hold, then the market is in for another bad day.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
876.50-877.00
887.50-888.00
893.50-894.00
903.50-904.50
907.25-908.25
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
867.50
857.00-856.00
844.50-842.00
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1189.50-1190.50
1205.50-1206.50
1213.00-1214.00
1221.25-1222.50
1230.50-1231.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1175.00
1166.50-1165.25
1155.50-1152.00
March 2009 Dow futures resistance
symbols: emini = ymh9
8576-8580
8698-8703
8730-8733
8790-8795
8850-8857
March 2009 Dow futures support
symbols: emini = ymh9
8491
8444-8437
8322-8312
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 11 / 2008
(Published Since 1996)
...............................................
Dateline: 6:46 pm eastern time, 12/11/2008
The market opened lower on Thursday and reversed from the
884.50-884.00 zone on the SP futures and put together a
decent bounce. However, as they have been doing the last 2
days, the bounce didn't stick as the SP futures had trouble
around the 902.50-903.50 area. After rejecting that zone,
the market popped just over it and reversed and the high was
in place. The updated resistance at 898 was tested and
rejected, and the market sold off to the key 884.50-884.00
zone. There was barely a bounce off of that area and after
the bounce fizzled at 887.50, the market rolled over hard.
The SP futures fell to 867.50 before a bounce into the
close.
The bear is growling again, as the back to back inside days
on Tuesday and Wednesday along with complacent VIX lead to a
sizable selloff on Thursday. This downside should continue
for another day or so, unless the SP futures can get back
over the 893.50-894.00 area and not reverse on Friday. The
VIX reversal is a negative, as is the break of the wedge
patterns mentioned last night. A drop to the 857.00-856.00
area on the SP futures would be the next key support. Even
if the market can rebound off of that zone on Friday
morning, the first decent bounce should set up a shorting
opportunity as soon as the upside fizzles, especially if
that fizzle occurs at a resistance area.
The initial resistance is at the 876.50-877.00 area on the
SP futures and the 1189.50-1190.50 area on the Nasdaq
futures. If the market gets there and the move stalls out,
it's a great shorting opportunity. If those are broken, then
there should be good resistance near the 887.50-888.00 area
on the SP futures and the 1205.50-1206.50 area on the Nasdaq
futures. If those are somehow exceeded, then a move towards
the 893.50-894.00 area on the SP futures and the 1213.00-
1214.00 area on the Nasdaq futures should offer a very good
shorting opportunity if the market is still vulnerable. If
those are exceeded and not quickly reversed, then there is
strong resistance at the 903.50-904.50 area on the SP
futures and the 1221.25-1222.50 area on the Nasdaq futures.
If we get a strong move, it must not fail again near the
907.25-908.25 area on the SP futures and the 1230.50-1231.50
area on the Nasdaq futures or we will repeat the selloff.
The initial support is at the 867.50 level on the SP futures
and the 1175.00 level on the Nasdaq futures. If those lows
are broken, then those areas will become good resistance on
a bounce. The next support should be key, at the 857.00-
856.00 area on the SP futures and the 1166.50-1165.25 area
on the Nasdaq futures. The market must reverse from those
areas, otherwise the market could be caving in again. If
there isn't a good reversal from those areas, then the
844.50-842.00 area on the SP futures and the 1155.50-1152.00
area on the Nasdaq futures could be in the cards. If those
do not hold, then the market is in for another bad day.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
876.50-877.00
887.50-888.00
893.50-894.00
903.50-904.50
907.25-908.25
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
867.50
857.00-856.00
844.50-842.00
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1189.50-1190.50
1205.50-1206.50
1213.00-1214.00
1221.25-1222.50
1230.50-1231.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1175.00
1166.50-1165.25
1155.50-1152.00
March 2009 Dow futures resistance
symbols: emini = ymh9
8576-8580
8698-8703
8730-8733
8790-8795
8850-8857
March 2009 Dow futures support
symbols: emini = ymh9
8491
8444-8437
8322-8312
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Thursday, December 11, 2008
TradeStalker's RBI Update 12/10/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 10 / 2008
(Published Since 1996)
...............................................
Dateline: 7:08 pm eastern time, 12/10/2008
The market opened higher on Wednesday, but the strength was
sold and the SP futures dropped 8.50 points to 892.25 before
turning back up. The rally fizzled after reaching 904.75 and
then a pullback to 893.25 was bought. The market rallied
towards the 909.50-910.25 zone, but the move fizzled and
reversed from 908.75 and rolled over. A pop off of 895.25
was reversed at new resistance at the 903 area, and the
market dropped to test the Tuesday lows. The test passed and
a very choppy rebound lasted until 5 minutes left in stock
trading. The SP futures backed off a bit over 7 points
before firming a bit into the close.
The daily indicators are still somewhat overbought. The
market traded inside on the Tuesday range for all but a few
seconds on the Dow on Wednesday. Those low areas now are
"must hold" to avoid a drop to fill the gap from Monday. The
market feels complacent and that's a bit of a red flag short
term. For now, it looks like the MARCH SP futures must get
over the initial resistance, and not quickly reverse, to get
something going on the upside. On the other side of the
coin, if the initial support is broken, then odds of
testing, and likely breaking, the Wednesday lows are pretty
good. The last two hours of trading formed a rising wedge
pattern on the SP futures going into the close, and a break
of that could start a sharp drop. If the SP futures open
higher and especially at the initial resistance areas, it
should set up a good reward/risk trade on the short side.
We roll over to March 2009 for all index futures contracts
on Thursday. The numbers are for the March futures. The
symbols are ES H9 for the emini SP futures, NQ H9 for the
emini Nasdaq futures, and YM H9 for the emini Dow futures.
The initial resistance is at the 902.50-903.50 area on the
March 2009 SP futures and the 1228.00-1229.00 area on the
March 2009 Nasdaq futures. If the market pops up on the
open, those would likely be a gift on the short side. If the
market gets there and doesn't reverse, then the next hurdles
would be at the 907.25-908.25 area on the SP futures and the
1238.50-1239.50 area on the Nasdaq futures. If those are
exceeded, then it would open the door for a move towards the
918.00-918.75 area on the SP futures and the 1252.50-1254.00
area on the Nasdaq futures. If the market gets up there
again, and doesn't get rejected, then we could see the
925.50-926.00 area on the SP futures and the 1264.50-1265.50
area on the Nasdaq futures on this leg up.
The initial support is at the 890.75-890.25 area on the SP
futures and the 1215.00-1214.75 area on the Nasdaq futures.
If broken, the market could accelerate to the downside. If
those areas are broken and then reversed, beware that a pop
that fizzles under the initial resistance would set up a
shorting opportunity. If the market drops to the 884.50-
884.00 area on the SP futures and the 1205.25-1203.50 area
on the Nasdaq futures, we need to see a third reversal from
that area to avoid trouble. If those are not reversed, then
the 879.50-878.50 area on the SP futures and the 1194.00-
1192.50 area on the Nasdaq futures could be magnets. If
those are reached and not reversed, then a drop towards the
872.75-872.00 area on the SP futures and the 1183.00-1182.00
area on the Nasdaq futures is likely in the cards. If the
market gets there, beware of a reversal unless there is some
panic selling going on. If those are broken, then the
865.50-864.50 area on the SP futures and the 1174.00-1172.50
area on the Nasdaq futures need to hold to avoid an ugly day
on the downside.
We roll over to March 2009 for all index futures contracts
on Thursday. The numbers are for the March futures. The
symbols are ES H9 for the emini SP futures, NQ H9 for the
emini Nasdaq futures, and YM H9 for the emini Dow futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
902.50-903.50
907.25-908.25
918.00-918.75
925.50-926.00
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
890.75-890.25
884.50-884.00
879.50-878.50
872.75-872.00
865.50-864.50
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1228.00-1229.00
1238.50-1239.50
1252.50-1254.00
1264.50-1265.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1215.00-1214.75
1205.25-1203.50
1194.00-1192.50
1183.00-1182.00
1174.00-1172.50
March 2009 Dow futures resistance
symbols: emini = ymh9
8790-8795
8850-8857
9000-9005
9058-9068
March 2009 Dow futures support
symbols: emini = ymh9
8684-8680
8622-8617
8594-8588
8518-8512
8477-8471
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 10 / 2008
(Published Since 1996)
...............................................
Dateline: 7:08 pm eastern time, 12/10/2008
The market opened higher on Wednesday, but the strength was
sold and the SP futures dropped 8.50 points to 892.25 before
turning back up. The rally fizzled after reaching 904.75 and
then a pullback to 893.25 was bought. The market rallied
towards the 909.50-910.25 zone, but the move fizzled and
reversed from 908.75 and rolled over. A pop off of 895.25
was reversed at new resistance at the 903 area, and the
market dropped to test the Tuesday lows. The test passed and
a very choppy rebound lasted until 5 minutes left in stock
trading. The SP futures backed off a bit over 7 points
before firming a bit into the close.
The daily indicators are still somewhat overbought. The
market traded inside on the Tuesday range for all but a few
seconds on the Dow on Wednesday. Those low areas now are
"must hold" to avoid a drop to fill the gap from Monday. The
market feels complacent and that's a bit of a red flag short
term. For now, it looks like the MARCH SP futures must get
over the initial resistance, and not quickly reverse, to get
something going on the upside. On the other side of the
coin, if the initial support is broken, then odds of
testing, and likely breaking, the Wednesday lows are pretty
good. The last two hours of trading formed a rising wedge
pattern on the SP futures going into the close, and a break
of that could start a sharp drop. If the SP futures open
higher and especially at the initial resistance areas, it
should set up a good reward/risk trade on the short side.
We roll over to March 2009 for all index futures contracts
on Thursday. The numbers are for the March futures. The
symbols are ES H9 for the emini SP futures, NQ H9 for the
emini Nasdaq futures, and YM H9 for the emini Dow futures.
The initial resistance is at the 902.50-903.50 area on the
March 2009 SP futures and the 1228.00-1229.00 area on the
March 2009 Nasdaq futures. If the market pops up on the
open, those would likely be a gift on the short side. If the
market gets there and doesn't reverse, then the next hurdles
would be at the 907.25-908.25 area on the SP futures and the
1238.50-1239.50 area on the Nasdaq futures. If those are
exceeded, then it would open the door for a move towards the
918.00-918.75 area on the SP futures and the 1252.50-1254.00
area on the Nasdaq futures. If the market gets up there
again, and doesn't get rejected, then we could see the
925.50-926.00 area on the SP futures and the 1264.50-1265.50
area on the Nasdaq futures on this leg up.
The initial support is at the 890.75-890.25 area on the SP
futures and the 1215.00-1214.75 area on the Nasdaq futures.
If broken, the market could accelerate to the downside. If
those areas are broken and then reversed, beware that a pop
that fizzles under the initial resistance would set up a
shorting opportunity. If the market drops to the 884.50-
884.00 area on the SP futures and the 1205.25-1203.50 area
on the Nasdaq futures, we need to see a third reversal from
that area to avoid trouble. If those are not reversed, then
the 879.50-878.50 area on the SP futures and the 1194.00-
1192.50 area on the Nasdaq futures could be magnets. If
those are reached and not reversed, then a drop towards the
872.75-872.00 area on the SP futures and the 1183.00-1182.00
area on the Nasdaq futures is likely in the cards. If the
market gets there, beware of a reversal unless there is some
panic selling going on. If those are broken, then the
865.50-864.50 area on the SP futures and the 1174.00-1172.50
area on the Nasdaq futures need to hold to avoid an ugly day
on the downside.
We roll over to March 2009 for all index futures contracts
on Thursday. The numbers are for the March futures. The
symbols are ES H9 for the emini SP futures, NQ H9 for the
emini Nasdaq futures, and YM H9 for the emini Dow futures.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
902.50-903.50
907.25-908.25
918.00-918.75
925.50-926.00
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
890.75-890.25
884.50-884.00
879.50-878.50
872.75-872.00
865.50-864.50
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1228.00-1229.00
1238.50-1239.50
1252.50-1254.00
1264.50-1265.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1215.00-1214.75
1205.25-1203.50
1194.00-1192.50
1183.00-1182.00
1174.00-1172.50
March 2009 Dow futures resistance
symbols: emini = ymh9
8790-8795
8850-8857
9000-9005
9058-9068
March 2009 Dow futures support
symbols: emini = ymh9
8684-8680
8622-8617
8594-8588
8518-8512
8477-8471
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Wednesday, December 10, 2008
Stock Market Day Trading
By Mike Reed
There are reasons why a day trader would prefer E-minis over stock market day trading, and vice versa. Here are a few major considerations.
The edge…
Stock market day trading can take advantage of the small and variable lag time between stocks and the futures. This can give a day trader who is stock market day trading an edge, especially if he/she is a scalper. And, if you are trading a liquid stock which is highly correlated to the Dow or S&P500, it’s possible to latch on when a “buy program” hits the market.
This variable lag, however, explains why the e-minis often times give more accurate support and resistance levels than stock market indices or individual stocks. Since the stock index futures lead the stock market, they’re not constantly lagging behind, playing catch up, or over-shooting a leader’s path, as the stock market is. The e-mini’s movements are more pure, reflecting supply and demand instantly and accurately.
The leverage and size…
Stock market day trading allows you to use less leverage and reduce your trading size to a level that may be more comfortable for some traders.
Trading one contract in the e-mini’s carries a hefty bit of leverage that some traders may not want. On the other hand, many traders prefer the futures leverage.
The liquidity…
If you are stock market day trading, you may have noticed that many individual stocks are not very liquid, at least not liquid enough for the kind of defensive day trading I do. To use my crucial rule, “every trade starts out as a scalp until proven otherwise,” you have to trade something that is extremely liquid, or slippage will ruin you. However, if you are interested in stock market day trading, there are some stocks that do have excellent liquidity.
The e-minis are one of the most liquid markets in the world, with very little slippage.
The professional competition…
The NYSE stocks trade in a pit with specialists taking advantage of the spread, scalping with minimal costs per trade, a huge advantage over the public. The playing field is not level. Specialists are not in business to lose money. (The Nasdaq stocks, however, trade electronically, eliminating these problems.)
E-mini’s are traded electronically without a pit and without locals taking advantage of the spread. (The Maxi contracts are still in the pit, but the e-minis appear to be leading the Maxis now, so there doesn’t appear to be direct competition between scalpers of the e-minis and the locals in the Maxis pit.) It’s true that big e-mini traders who own a seat on the exchange and trade “size” have a cost advantage, but by historic standards, their costs are not much lower than the “retail” traders. Any e-mini trader can now trade a “round turn” (buy and sell combined) for $4.80 per contract. And retail costs have been dropping. They’ll probably continue to fall.
The ease and psychology of two-sided trading…
In stock market day trading, there is a view widely held by retail traders that shorting a stock is not the most “wholesome” thing a person can do. (But actually, short positions are “squeezed” in up trends so they provide additional “fuel” for up trends. After all, a price rally normally doesn’t stop until most of the buyers have bought and most of the shorts have been squeezed out. Take the shorts out of the equation and rallies are not as sustainable.) Also, until recently, stocks are a bit difficult to short due to the “up-tick” rule - which means a stock has to move up one tick before you can short it.
E-mini day trading was never hindered by an up-tick rule. Going short is as easy as going long. And as far as I know, there’s no stigma attached to shorting the E-minis. In fact, most professional stock index futures traders I’ve met prefer shorts over longs. Maybe it’s because the public is more comfortable making money on uptrends.
Preparation to trade…
Stock market day trading doesn’t necessarily involve stock fundamentals. But stock fundamentals, including the stock’s “story,” can help determine whether you want to favor longs or shorts. For instance, if you’re day trading the stock of company that has just announced a cure for cancer; you might favor the long side. But you’ve got to dig and read excellent sources to find good fundamental stock info. And even if you’re not day trading with stock fundamentals, you’ve still got to search hundreds of stock charts for technical setups and chart patterns. This can take hours per day.
Day trading the e-minis doesn’t necessarily involve anything like stock fundamental analysis. I don’t even pay attention to the content of important news releases, such as the Fed’s decisions on interest rates. I just keep track of when the important reports are scheduled, and I get out of their way until after the news hits. When the news hits, there are usually two false moves. Then a decent trend often emerges, and I try to get on board. With no stock fundamentals to consider, and only the same charts to analyze each night, I save myself hundreds of hours of work each year.
Taxes…
I’m not an expert on taxes, but one thing is for sure, it’s much easer to prepare you own tax forms if you’re day trading the e-minis than if you are a taxpayer who is making a living stock market day trading or exchange traded funds (like the Spyders and QQQQ’s). There may also be some dollar tax advantages. Check with your tax adviser, of course.
Size of your trading account…
Stock market day trading requires a $25,000 minimum in your account. The government stepped in to protect us from ourselves, I guess.
I suppose you could trade the e-mini’s with $2,000 in your account, but I wouldn’t advise starting with less than $15,000… unless you’re already a seasoned professional.
Being an e-mini day trader myself, I may not be the most unbiased source of information on this subject. But no matter which way you decide to go, my services can be extremely valuable to you whether you are stock market day trading, or Day trading the e-minis.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG
There are reasons why a day trader would prefer E-minis over stock market day trading, and vice versa. Here are a few major considerations.
The edge…
Stock market day trading can take advantage of the small and variable lag time between stocks and the futures. This can give a day trader who is stock market day trading an edge, especially if he/she is a scalper. And, if you are trading a liquid stock which is highly correlated to the Dow or S&P500, it’s possible to latch on when a “buy program” hits the market.
This variable lag, however, explains why the e-minis often times give more accurate support and resistance levels than stock market indices or individual stocks. Since the stock index futures lead the stock market, they’re not constantly lagging behind, playing catch up, or over-shooting a leader’s path, as the stock market is. The e-mini’s movements are more pure, reflecting supply and demand instantly and accurately.
The leverage and size…
Stock market day trading allows you to use less leverage and reduce your trading size to a level that may be more comfortable for some traders.
Trading one contract in the e-mini’s carries a hefty bit of leverage that some traders may not want. On the other hand, many traders prefer the futures leverage.
The liquidity…
If you are stock market day trading, you may have noticed that many individual stocks are not very liquid, at least not liquid enough for the kind of defensive day trading I do. To use my crucial rule, “every trade starts out as a scalp until proven otherwise,” you have to trade something that is extremely liquid, or slippage will ruin you. However, if you are interested in stock market day trading, there are some stocks that do have excellent liquidity.
The e-minis are one of the most liquid markets in the world, with very little slippage.
The professional competition…
The NYSE stocks trade in a pit with specialists taking advantage of the spread, scalping with minimal costs per trade, a huge advantage over the public. The playing field is not level. Specialists are not in business to lose money. (The Nasdaq stocks, however, trade electronically, eliminating these problems.)
E-mini’s are traded electronically without a pit and without locals taking advantage of the spread. (The Maxi contracts are still in the pit, but the e-minis appear to be leading the Maxis now, so there doesn’t appear to be direct competition between scalpers of the e-minis and the locals in the Maxis pit.) It’s true that big e-mini traders who own a seat on the exchange and trade “size” have a cost advantage, but by historic standards, their costs are not much lower than the “retail” traders. Any e-mini trader can now trade a “round turn” (buy and sell combined) for $4.80 per contract. And retail costs have been dropping. They’ll probably continue to fall.
The ease and psychology of two-sided trading…
In stock market day trading, there is a view widely held by retail traders that shorting a stock is not the most “wholesome” thing a person can do. (But actually, short positions are “squeezed” in up trends so they provide additional “fuel” for up trends. After all, a price rally normally doesn’t stop until most of the buyers have bought and most of the shorts have been squeezed out. Take the shorts out of the equation and rallies are not as sustainable.) Also, until recently, stocks are a bit difficult to short due to the “up-tick” rule - which means a stock has to move up one tick before you can short it.
E-mini day trading was never hindered by an up-tick rule. Going short is as easy as going long. And as far as I know, there’s no stigma attached to shorting the E-minis. In fact, most professional stock index futures traders I’ve met prefer shorts over longs. Maybe it’s because the public is more comfortable making money on uptrends.
Preparation to trade…
Stock market day trading doesn’t necessarily involve stock fundamentals. But stock fundamentals, including the stock’s “story,” can help determine whether you want to favor longs or shorts. For instance, if you’re day trading the stock of company that has just announced a cure for cancer; you might favor the long side. But you’ve got to dig and read excellent sources to find good fundamental stock info. And even if you’re not day trading with stock fundamentals, you’ve still got to search hundreds of stock charts for technical setups and chart patterns. This can take hours per day.
Day trading the e-minis doesn’t necessarily involve anything like stock fundamental analysis. I don’t even pay attention to the content of important news releases, such as the Fed’s decisions on interest rates. I just keep track of when the important reports are scheduled, and I get out of their way until after the news hits. When the news hits, there are usually two false moves. Then a decent trend often emerges, and I try to get on board. With no stock fundamentals to consider, and only the same charts to analyze each night, I save myself hundreds of hours of work each year.
Taxes…
I’m not an expert on taxes, but one thing is for sure, it’s much easer to prepare you own tax forms if you’re day trading the e-minis than if you are a taxpayer who is making a living stock market day trading or exchange traded funds (like the Spyders and QQQQ’s). There may also be some dollar tax advantages. Check with your tax adviser, of course.
Size of your trading account…
Stock market day trading requires a $25,000 minimum in your account. The government stepped in to protect us from ourselves, I guess.
I suppose you could trade the e-mini’s with $2,000 in your account, but I wouldn’t advise starting with less than $15,000… unless you’re already a seasoned professional.
Being an e-mini day trader myself, I may not be the most unbiased source of information on this subject. But no matter which way you decide to go, my services can be extremely valuable to you whether you are stock market day trading, or Day trading the e-minis.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG
Tuesday, December 09, 2008
Day Trading Futures
By Mike Reed
When day trading futures, you enter and exit all positions in the same day - never carrying a position overnight. Since the overnight moves of the market are difficult to predict, many traders avoid risk by day trading. Ironically, the public believes that day trading is the riskiest way to trade.
THIS IS A MYTH!
Some traders day trading futures, make 1 to 3 trades per day, trying to catch the major intraday moves. Others trade in-and-out very frequently, trying to “scalp” a small profit on each trade. (My style uses a unique blend of these two strategies.)
For those day trading futures, the E-mini Stock Index Futures have become the most popular day trading vehicle because of their liquidity, leverage, and the ease of trading them online. You can go short or long with equal ease – which was especially attractive before the “up tick” rule for stocks was removed.
The time relationship of the e-minis (and the “big contracts”) to the cash indices is important to understand. Let’s start from square one.
The S&P 500 stock index (the cash index, symbol SPX) is central to day trading futures. It has an Exchange Traded Fund (the “Spyders,” symbol SPY) that trades just like a stock. The price of the S&P 500 cash index moves up and down with the 500 stocks that make up the index. The SPYders follow the S&P 500 cash index very closely. You can trade Exchange Traded Funds such as the SPY (and QQQQ for the Nasdaq 100) online from home. But for day traders, they are not as favorable as day trading futures.
The concept of “futures” is a little confusing, but it boils down to this: the financial industry has turned the S&P 500 cash index into a “contract” that trades like a stock. The contract (or futures contract) has a price that goes up and down from one moment to the next. It has a chart that looks just like stock chart, and you can make money with it by buying low and selling high, or vice versa. That’s a complicated as it needs to be for now.
The “big contracts” or SP Maxis were invented first and they’re still around. With the big contracts, a lot of money changes hands. When the price of the SP Maxis moves one point, $250 per contract moves with it. The SP Maxi contracts trade in a literal “pit” where the traders, called “locals,” shout at each other, buying and selling for everyone who wants a piece of the action.
The locals are not public servants; of course, they make money for their own accounts. They have the advantage of being able to read each other’s body language and the tone of the other trader’s voices. They see what the strongest traders in the pit are doing. They have several other advantages too; their costs per trade are tiny compared to the public’s commissions.
The “locals” aren’t born as professional traders though, they learn to trade like everyone else, except they have a huge advantage in learning as well because they learn to scalp first! Their instant access and low commissions make this possible compared to others, but those day trading futures online can take advantage of scalping trades as well.
Scalping is basically limiting your losses to only one or two ticks while taking any profit you get as you get it. It’s easier than going for several points per trade; I’ve been using this strategy day trading futures with much success.
Locals also use the spread (the difference between the bid and ask price), to grab quick profits from orders that come in on either side of the market. This makes scalping easier for them.
In the past, all these advantages made it impossible for a “retail” day trader to be a successful scalper. It was insane to try. And to this day many traders have the idea that scalping is too difficult for the public because you have to compete against traders with an unfair advantage.
But all that has changed now. If you follow some simple, yet important guidelines then you too can be successful scalping and day trading futures online.
They took the concept of the Maxi futures contracts and came up with smaller contracts (the e-minis) that move $50.00 per SP point instead of $250.00. This allows all traders, big and small, to trade the stock index futures.
But even more radically, they set it up so that the smaller contracts (the e-minis) are traded only through computers. This was revolutionary, they bypassed the pit, taking away the advantage of the “locals,” and leveling the playing field in a way that has never been done before. And to level the field even more, retail commission costs fell like a rock. Today, any trader day trading futures with a small account can pay $4.80 per round turn (entering and exiting a trade).
This means that scalping is open to the day trading public for the first time in history. But most people who are day trading futures don’t even realize where the new advantage really is.
Scalping is one of the keys to making a living day trading futures as I do, because I follow a simple rule: "Every trade starts out as a scalp until proven otherwise".
The SP e-mini futures became more and more popular and more liquid, breaking a lot of records along the way.
The SP Maxis futures and the SP e-mini futures are both derived from the S&P 500 index (symbol SPX), which, as I said, has an ETF that trades like a stock (symbol SPY).
So the question is - which of these is the leader and which are followers?
Today the e-mini futures track the Maxi contracts almost tick for tick, with the e-mini’s beginning to lead the Maxi’s at times, and also “overshooting” the Maxis at emotional extremes, such as the at the top of an intraday rally.
Both the SP e-minis and the SP Maxis (the futures) lead the S&P 500 cash index by a variable amount of time, often in the range of a fraction of a second. Some people call this “the tail wagging the dog,” because the futures are derivatives of the stock indices, but call it what you want, the futures are leading the way.
The fact that the futures lead the markets makes their chart patterns more “pure” and reliable for support and resistance trading. This makes a huge difference to me.
I use the stock index futures (the e-minis and Maxis) for calculating daily support and resistance areas, which are the basis of my own trading style – a style of trading that has paid my bills and built my financial security for about 26 years now.
Since 1996 I’ve published my support and resistance levels as well as my daily trading plan in my RBI Trader's Updates.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
When day trading futures, you enter and exit all positions in the same day - never carrying a position overnight. Since the overnight moves of the market are difficult to predict, many traders avoid risk by day trading. Ironically, the public believes that day trading is the riskiest way to trade.
THIS IS A MYTH!
Some traders day trading futures, make 1 to 3 trades per day, trying to catch the major intraday moves. Others trade in-and-out very frequently, trying to “scalp” a small profit on each trade. (My style uses a unique blend of these two strategies.)
For those day trading futures, the E-mini Stock Index Futures have become the most popular day trading vehicle because of their liquidity, leverage, and the ease of trading them online. You can go short or long with equal ease – which was especially attractive before the “up tick” rule for stocks was removed.
The time relationship of the e-minis (and the “big contracts”) to the cash indices is important to understand. Let’s start from square one.
The S&P 500 stock index (the cash index, symbol SPX) is central to day trading futures. It has an Exchange Traded Fund (the “Spyders,” symbol SPY) that trades just like a stock. The price of the S&P 500 cash index moves up and down with the 500 stocks that make up the index. The SPYders follow the S&P 500 cash index very closely. You can trade Exchange Traded Funds such as the SPY (and QQQQ for the Nasdaq 100) online from home. But for day traders, they are not as favorable as day trading futures.
The concept of “futures” is a little confusing, but it boils down to this: the financial industry has turned the S&P 500 cash index into a “contract” that trades like a stock. The contract (or futures contract) has a price that goes up and down from one moment to the next. It has a chart that looks just like stock chart, and you can make money with it by buying low and selling high, or vice versa. That’s a complicated as it needs to be for now.
The “big contracts” or SP Maxis were invented first and they’re still around. With the big contracts, a lot of money changes hands. When the price of the SP Maxis moves one point, $250 per contract moves with it. The SP Maxi contracts trade in a literal “pit” where the traders, called “locals,” shout at each other, buying and selling for everyone who wants a piece of the action.
The locals are not public servants; of course, they make money for their own accounts. They have the advantage of being able to read each other’s body language and the tone of the other trader’s voices. They see what the strongest traders in the pit are doing. They have several other advantages too; their costs per trade are tiny compared to the public’s commissions.
The “locals” aren’t born as professional traders though, they learn to trade like everyone else, except they have a huge advantage in learning as well because they learn to scalp first! Their instant access and low commissions make this possible compared to others, but those day trading futures online can take advantage of scalping trades as well.
Scalping is basically limiting your losses to only one or two ticks while taking any profit you get as you get it. It’s easier than going for several points per trade; I’ve been using this strategy day trading futures with much success.
Locals also use the spread (the difference between the bid and ask price), to grab quick profits from orders that come in on either side of the market. This makes scalping easier for them.
In the past, all these advantages made it impossible for a “retail” day trader to be a successful scalper. It was insane to try. And to this day many traders have the idea that scalping is too difficult for the public because you have to compete against traders with an unfair advantage.
But all that has changed now. If you follow some simple, yet important guidelines then you too can be successful scalping and day trading futures online.
They took the concept of the Maxi futures contracts and came up with smaller contracts (the e-minis) that move $50.00 per SP point instead of $250.00. This allows all traders, big and small, to trade the stock index futures.
But even more radically, they set it up so that the smaller contracts (the e-minis) are traded only through computers. This was revolutionary, they bypassed the pit, taking away the advantage of the “locals,” and leveling the playing field in a way that has never been done before. And to level the field even more, retail commission costs fell like a rock. Today, any trader day trading futures with a small account can pay $4.80 per round turn (entering and exiting a trade).
This means that scalping is open to the day trading public for the first time in history. But most people who are day trading futures don’t even realize where the new advantage really is.
Scalping is one of the keys to making a living day trading futures as I do, because I follow a simple rule: "Every trade starts out as a scalp until proven otherwise".
The SP e-mini futures became more and more popular and more liquid, breaking a lot of records along the way.
The SP Maxis futures and the SP e-mini futures are both derived from the S&P 500 index (symbol SPX), which, as I said, has an ETF that trades like a stock (symbol SPY).
So the question is - which of these is the leader and which are followers?
Today the e-mini futures track the Maxi contracts almost tick for tick, with the e-mini’s beginning to lead the Maxi’s at times, and also “overshooting” the Maxis at emotional extremes, such as the at the top of an intraday rally.
Both the SP e-minis and the SP Maxis (the futures) lead the S&P 500 cash index by a variable amount of time, often in the range of a fraction of a second. Some people call this “the tail wagging the dog,” because the futures are derivatives of the stock indices, but call it what you want, the futures are leading the way.
The fact that the futures lead the markets makes their chart patterns more “pure” and reliable for support and resistance trading. This makes a huge difference to me.
I use the stock index futures (the e-minis and Maxis) for calculating daily support and resistance areas, which are the basis of my own trading style – a style of trading that has paid my bills and built my financial security for about 26 years now.
Since 1996 I’ve published my support and resistance levels as well as my daily trading plan in my RBI Trader's Updates.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
TradeStalker's RBI Update 12/09/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 9 / 2008
(Published Since 1996)
...............................................
Dateline: 8:05 pm eastern time, 12/9/2008
The market opened lower on Tuesday and the SP futures turned
up from 894.00 and moved up to 916.25 by late morning. A
drop held at 901.50, and the SP futures bounced back towards
our 911-912 resistance. The pop fizzled after reaching
910.25, and the reversal broke the 901.50 level on the way
to a new low at 884.50. The SP futures bounced back to
901.25, which coincided with the 60ema on the 5 minute
chart, and the market fell back to test the lows. A 10 point
bounce to 894.00 fizzled and the SP futures went to 885.00
one more time and then the market churned into the close.
The overbought indicators led to a hefty pullback thus far.
The downside was losing momentum going into the close, so
the early action should be key for the day on Wednesday. If
the 885.00-884.50 area is cut through, then the 880.50-
879.50 area on the SP futures should be a magnet. If the
market gets down there in the early going on Wednesday, and
the market reverses back up from that area, then we could
get a decent rally attempt. Just beware that at the higher
levels (in the high 900-teens) the bounces are not sticking.
In addition, the VIX was up just a fraction while the market
was hammered pretty hard. It gave 1 sell signal for
Wednesday, and sure didn't show much fear for such a sizable
down day. The market acts like it's comfortable as long as
that 885.00-884.50 area holds. However, if we get a decent
bounce it will likely set up a good shorting opportunity,
especially if the bounce fizzles and reverses from near the
909.50-910.25 area again on Wednesday. It looks like the
market needs to get over that area to get a good
On Wednesday look for an early bounce that fizzles to set up
a shorting opportunity. If that plays out, then the Tuesday
lows will need to hold, otherwise the gap from Monday will
likely be filled. If that occurs and the market can reverse,
then buying pullbacks should work out until the move runs
out of steam and fizzles out.
The initial resistance in the first 15 minutes at the 895.50
area on the SP futures and the 1223.00-1224.00 area on the
Nasdaq futures. If the market pops up there and
stalls/reverses, then it sets up a good shorting
opportunity. If the market doesn't reverse from there, then
the next hurdles are at the 899.50-900.25 area on the SP
futures and the 1231.00-1232.00 area on the Nasdaq futures.
If those are poked through, then the pivotal area should be
at the 902.50-903.50 area on the SP futures and the 1236.50-
1237.50 area on the Nasdaq futures. If those are not a
problem, then a move towards the 909.50-910.25 area on the
SP futures and the 1242.50-1243.50 area on the Nasdaq
futures would be key. If those are not rejected, then the
big hurdles are up at the 918.50-919.25 area on the SP
futures and the 1252.50-1254.00 area on the Nasdaq futures.
If the market gets a good rally going, we could see the
925.50-926.00 area on the SP futures and the 1264.50-1265.50
on the Nasdaq futures.
The initial support is at the 885.00-884.50 area on the SP
futures and the 1202.25-1200.50 area on the Nasdaq futures.
If those are broken, then a drop towards the 880.50-879.50
area on the SP futures and the 1194.00-1192.50 area on the
Nasdaq futures could be in the cards. Look to get long on a
reversal if that occurs. If those are not held, then the
872.75-872.00 area on the SP futures and the 1184.00-1182.50
area on the Nasdaq futures would be next. If the market
cannot hold those areas, then the 865.50-864.50 area on the
SP futures and the 1174.00-1172.50 area on the Nasdaq
futures could be revisited. If the market is hit hard again,
then the major support short term is down at the 857.00-
856.00 area on the SP futures and the 1157.00-1155.00 area
on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
895.50
899.50-900.25
902.50-903.50
909.50-910.25
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
885.00-884.50
880.50-879.50
872.75-872.00
865.50-864.50
857.00-856.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1223.00-1224.00
1231.00-1232.00
1236.50-1237.50
1242.50-1243.50
1152.50-1254.00
1264.50-1265.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1202.25-1200.50
1194.00-1192.50
1184.00-1182.50
1174.00-1172.50
1157.00-1155.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8758-8764
8790-8795
8838-8842
8864-8872
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8649-8644
8610-8602
8558-8552
8484-8477
8408-8402
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 9 / 2008
(Published Since 1996)
...............................................
Dateline: 8:05 pm eastern time, 12/9/2008
The market opened lower on Tuesday and the SP futures turned
up from 894.00 and moved up to 916.25 by late morning. A
drop held at 901.50, and the SP futures bounced back towards
our 911-912 resistance. The pop fizzled after reaching
910.25, and the reversal broke the 901.50 level on the way
to a new low at 884.50. The SP futures bounced back to
901.25, which coincided with the 60ema on the 5 minute
chart, and the market fell back to test the lows. A 10 point
bounce to 894.00 fizzled and the SP futures went to 885.00
one more time and then the market churned into the close.
The overbought indicators led to a hefty pullback thus far.
The downside was losing momentum going into the close, so
the early action should be key for the day on Wednesday. If
the 885.00-884.50 area is cut through, then the 880.50-
879.50 area on the SP futures should be a magnet. If the
market gets down there in the early going on Wednesday, and
the market reverses back up from that area, then we could
get a decent rally attempt. Just beware that at the higher
levels (in the high 900-teens) the bounces are not sticking.
In addition, the VIX was up just a fraction while the market
was hammered pretty hard. It gave 1 sell signal for
Wednesday, and sure didn't show much fear for such a sizable
down day. The market acts like it's comfortable as long as
that 885.00-884.50 area holds. However, if we get a decent
bounce it will likely set up a good shorting opportunity,
especially if the bounce fizzles and reverses from near the
909.50-910.25 area again on Wednesday. It looks like the
market needs to get over that area to get a good
On Wednesday look for an early bounce that fizzles to set up
a shorting opportunity. If that plays out, then the Tuesday
lows will need to hold, otherwise the gap from Monday will
likely be filled. If that occurs and the market can reverse,
then buying pullbacks should work out until the move runs
out of steam and fizzles out.
The initial resistance in the first 15 minutes at the 895.50
area on the SP futures and the 1223.00-1224.00 area on the
Nasdaq futures. If the market pops up there and
stalls/reverses, then it sets up a good shorting
opportunity. If the market doesn't reverse from there, then
the next hurdles are at the 899.50-900.25 area on the SP
futures and the 1231.00-1232.00 area on the Nasdaq futures.
If those are poked through, then the pivotal area should be
at the 902.50-903.50 area on the SP futures and the 1236.50-
1237.50 area on the Nasdaq futures. If those are not a
problem, then a move towards the 909.50-910.25 area on the
SP futures and the 1242.50-1243.50 area on the Nasdaq
futures would be key. If those are not rejected, then the
big hurdles are up at the 918.50-919.25 area on the SP
futures and the 1252.50-1254.00 area on the Nasdaq futures.
If the market gets a good rally going, we could see the
925.50-926.00 area on the SP futures and the 1264.50-1265.50
on the Nasdaq futures.
The initial support is at the 885.00-884.50 area on the SP
futures and the 1202.25-1200.50 area on the Nasdaq futures.
If those are broken, then a drop towards the 880.50-879.50
area on the SP futures and the 1194.00-1192.50 area on the
Nasdaq futures could be in the cards. Look to get long on a
reversal if that occurs. If those are not held, then the
872.75-872.00 area on the SP futures and the 1184.00-1182.50
area on the Nasdaq futures would be next. If the market
cannot hold those areas, then the 865.50-864.50 area on the
SP futures and the 1174.00-1172.50 area on the Nasdaq
futures could be revisited. If the market is hit hard again,
then the major support short term is down at the 857.00-
856.00 area on the SP futures and the 1157.00-1155.00 area
on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
895.50
899.50-900.25
902.50-903.50
909.50-910.25
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
885.00-884.50
880.50-879.50
872.75-872.00
865.50-864.50
857.00-856.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1223.00-1224.00
1231.00-1232.00
1236.50-1237.50
1242.50-1243.50
1152.50-1254.00
1264.50-1265.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1202.25-1200.50
1194.00-1192.50
1184.00-1182.50
1174.00-1172.50
1157.00-1155.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8758-8764
8790-8795
8838-8842
8864-8872
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8649-8644
8610-8602
8558-8552
8484-8477
8408-8402
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's RBI Update 12/08/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 8 / 2008
(Published Since 1996)
...............................................
Dateline: 7:43 pm eastern time, 12/8/2008
The market gapped up on Monday and above the recent trading
range. The ES continued higher from 895.50 and ran up to
907.50 before pulling back. The pullback held at 895.75 and
the market turned back up. After getting to 911.75, the SP
futures made a little 1-2-3 top and pulled back to 896.25
and that held for a third time. The SP futures bounced back
to the 904.75 level, as old support turned into resistance,
and then the SP futures broke the 895.50 level, but then
reversed from the 60 ema on the 5 minute chart and turned
back up. The SP futures took out that 905 resistance and
rallied up to the 917-918 area. The SP futures popped over
that zone and reached 919.75, but quickly reversed back down
and dropped to 901.50 (also the 60 ema on the 5 minute
chart) by the close.
The SP futures now have an unfilled gap above and below
Monday's prices. The good news is that the market broke out
to the upside from its range from last week. The bad news is
that the SP futures rejected the 918 area, which is a
logical spot for the upside to reverse.
The market reversed late on Monday and is now getting
overbought on some gauges. The strength will likely be sold
on Tuesday, as the market backs off for a better buying
opportunity at lower prices. So, if there is early strength,
it should set up a good shorting opportunity. If that plays
out and the Monday afternoon lows are broken, then the door
would be open for the market to go down to fill the Monday
gap. However, if the market goes down to the 880.50-879.50
area on the SP futures and can't quickly reverse, then a
short term top will be in place and a deeper correction is
likely in the works.
The initial resistance is at the 912.50-913.00 area on the
SP futures and the 1229.50-1230.25 area on the Nasdaq
futures. If those areas are reached and the move fizzles, it
sets up a good shorting opportunity. If those areas are
easily exceeded, then the key hurdles would be at the
918.50-919.25 area on the SP futures and the 1236.75-1237.75
area on the Nasdaq futures. That is key resistance on
Tuesday and if it's not rejected then we should go for the
925.50-926.00 area on the SP futures and the 1244.50-1245.50
area on the Nasdaq futures before a reversal occurs.
The initial support is at the 898.00 area on the SP futures
and the 1204.00 area on the Nasdaq futures. If the market
can't turn up from those levels, then the 893.00-892.50 area
on the SP futures and the 1200.25-1198.50 area on the Nasdaq
futures will need to hold. If they are not quickly reversed,
then it opens the door for a drop towards the 880.50-879.50
area on the SP futures and the 1184.00-1182.50 area on the
Nasdaq futures. If those are tested and the market cannot
get turned around, then another test of the old 872.75-
872.00 area on the SP futures and the 1174.00-1172.50 area
on the Nasdaq futures is likely before an attempt to get
turned around.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
912.50-913.00
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
898.00
893.00-892.50
880.50-879.50
872.75-872.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1229.50-1230.25
1236.75-1237.75
1244.50-1245.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1204.00
1200.25-1198.50
1184.00-1182.50
1174.00-1172.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8961-8966
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8812
8807-8802
8684-8679
8610-8602
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 8 / 2008
(Published Since 1996)
...............................................
Dateline: 7:43 pm eastern time, 12/8/2008
The market gapped up on Monday and above the recent trading
range. The ES continued higher from 895.50 and ran up to
907.50 before pulling back. The pullback held at 895.75 and
the market turned back up. After getting to 911.75, the SP
futures made a little 1-2-3 top and pulled back to 896.25
and that held for a third time. The SP futures bounced back
to the 904.75 level, as old support turned into resistance,
and then the SP futures broke the 895.50 level, but then
reversed from the 60 ema on the 5 minute chart and turned
back up. The SP futures took out that 905 resistance and
rallied up to the 917-918 area. The SP futures popped over
that zone and reached 919.75, but quickly reversed back down
and dropped to 901.50 (also the 60 ema on the 5 minute
chart) by the close.
The SP futures now have an unfilled gap above and below
Monday's prices. The good news is that the market broke out
to the upside from its range from last week. The bad news is
that the SP futures rejected the 918 area, which is a
logical spot for the upside to reverse.
The market reversed late on Monday and is now getting
overbought on some gauges. The strength will likely be sold
on Tuesday, as the market backs off for a better buying
opportunity at lower prices. So, if there is early strength,
it should set up a good shorting opportunity. If that plays
out and the Monday afternoon lows are broken, then the door
would be open for the market to go down to fill the Monday
gap. However, if the market goes down to the 880.50-879.50
area on the SP futures and can't quickly reverse, then a
short term top will be in place and a deeper correction is
likely in the works.
The initial resistance is at the 912.50-913.00 area on the
SP futures and the 1229.50-1230.25 area on the Nasdaq
futures. If those areas are reached and the move fizzles, it
sets up a good shorting opportunity. If those areas are
easily exceeded, then the key hurdles would be at the
918.50-919.25 area on the SP futures and the 1236.75-1237.75
area on the Nasdaq futures. That is key resistance on
Tuesday and if it's not rejected then we should go for the
925.50-926.00 area on the SP futures and the 1244.50-1245.50
area on the Nasdaq futures before a reversal occurs.
The initial support is at the 898.00 area on the SP futures
and the 1204.00 area on the Nasdaq futures. If the market
can't turn up from those levels, then the 893.00-892.50 area
on the SP futures and the 1200.25-1198.50 area on the Nasdaq
futures will need to hold. If they are not quickly reversed,
then it opens the door for a drop towards the 880.50-879.50
area on the SP futures and the 1184.00-1182.50 area on the
Nasdaq futures. If those are tested and the market cannot
get turned around, then another test of the old 872.75-
872.00 area on the SP futures and the 1174.00-1172.50 area
on the Nasdaq futures is likely before an attempt to get
turned around.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
912.50-913.00
918.50-919.25
925.50-926.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
898.00
893.00-892.50
880.50-879.50
872.75-872.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1229.50-1230.25
1236.75-1237.75
1244.50-1245.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1204.00
1200.25-1198.50
1184.00-1182.50
1174.00-1172.50
December 2008 Dow futures resistance
symbols: emini = ymz8
8961-8966
9020-9025
9068-9078
December 2008 Dow futures support
symbols: emini = ymz8
8812
8807-8802
8684-8679
8610-8602
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's RBI Update 12/07/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 7 / 2008
(Published Since 1996)
...............................................
Dateline: 5:40 pm eastern time, 12/7/2008
The market opened lower on Friday and the move was instantly
reversed just like all of the big opens last week. The SP
futures went from 830.50 to 841.50 in less than 15 minutes
and then the downside resumed. The SP futures broke the key
support at the 818.00-817.75 zone and quickly reversed, and
the market tried to get going on the upside. The 828.50
resistance was a roadblock, as the move fizzled and the SP
futures dropped to 819.50 before reversing. The market
started a tepid grind higher, but after getting over the
838.50-839.00 area, the SP futures held that area on a
pullback and then the upside continued. Good buying and
shorts covering started in earnest in the last 2 hours as
the market rallied steadily into the close.
The SP futures ended the day backing away from the 880.50-
882.00 resistance zone. The short term indicators are
somewhat overbought, but not quite at across the board
extremes that gave the setup we had last Friday. The path of
least resistance should be to the upside, as the action has
been pretty good lately. However, the first good trade on
Monday should set up on the short side, as profits from a
60+ point move on the SP futures are taken into any
strength. If that plays out early, then the first decent
pullback should set up a buying opportunity. The initial
support will need to hold, otherwise a deeper retracement is
coming before buyers step back to the plate.
The initial resistance is at the 880.50-882.00 area on the
SP futures and the 1185.00-1186.25 area on the Nasdaq
futures. If the market pops up there and reverses on Monday,
it should set up a good shorting opportunity. If the market
doesn't have trouble at those areas, then the next
resistance is at the 889.75-890.25 area on the SP futures
and the 1195.00-1196.00 area on the Nasdaq futures. A turn
from those areas is likely, so be alert for a reversal if
the market gets there and the move fizzles out. If those are
not a problem, then the 897.00-898.00 area on the SP futures
and the 1201.50-1203.00 area on the Nasdaq futures would be
next. If those aren't rejected, then we could go for the
904.50 area on the SP futures. If the market has a big
follow-through day on the upside, then look for good
resistance up at the 917.00-918.00 area on the SP futures.
The initial support is at the 856.00-855.75 area on the SP
futures and the 1153.25-1152.50 area on the Nasdaq futures.
If those areas do not hold, then it looks like the 849.00-
848.00 area on the SP futures and the 1148.00-1146.50 area
on the Nasdaq futures could be pivotal. If the market
doesn't quickly reverse from those areas, then the next key
support is down at the 839.00-838.50 area on the SP futures
and the 1125.00-1123.50 area on the Nasdaq futures. The
trends turned up when that area was broken and held on
Friday. If those areas are broken, then the next support is
around the 835.00 area on the SP futures and the 1117.50
area on the Nasdaq futures, and if those are broken then
there should be strong support at the 825.50-825.00 area on
the SP and the 1106.75-1105.50 area on the Nasdaq futures.
If those are broken, then the Friday lows at the 817.00
level on the SP futures and the 1095.00 level on the Nasdaq
futures need to hold, otherwise the market is in for a bad
day.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
880.50-882.00
889.75-890.25
897.00-898.00
904.50
917.00-918.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
856.00-855.75
849.00-848.00
839.00-838.50
835.00
825.50-825.00
817.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1185.00-1186.25
1195.00-1196.00
1201.50-1203.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.25-1152.50
1148.00-1146.50
1125.00-1123.50
1117.50
1106.75-1105.50
1095.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8685-8691
8749-8754
8820-8828
December 2008 Dow futures support
symbols: emini = ymz8
8455-8452
8397-8390
8308-8300
8270
8171-8166
8116
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 7 / 2008
(Published Since 1996)
...............................................
Dateline: 5:40 pm eastern time, 12/7/2008
The market opened lower on Friday and the move was instantly
reversed just like all of the big opens last week. The SP
futures went from 830.50 to 841.50 in less than 15 minutes
and then the downside resumed. The SP futures broke the key
support at the 818.00-817.75 zone and quickly reversed, and
the market tried to get going on the upside. The 828.50
resistance was a roadblock, as the move fizzled and the SP
futures dropped to 819.50 before reversing. The market
started a tepid grind higher, but after getting over the
838.50-839.00 area, the SP futures held that area on a
pullback and then the upside continued. Good buying and
shorts covering started in earnest in the last 2 hours as
the market rallied steadily into the close.
The SP futures ended the day backing away from the 880.50-
882.00 resistance zone. The short term indicators are
somewhat overbought, but not quite at across the board
extremes that gave the setup we had last Friday. The path of
least resistance should be to the upside, as the action has
been pretty good lately. However, the first good trade on
Monday should set up on the short side, as profits from a
60+ point move on the SP futures are taken into any
strength. If that plays out early, then the first decent
pullback should set up a buying opportunity. The initial
support will need to hold, otherwise a deeper retracement is
coming before buyers step back to the plate.
The initial resistance is at the 880.50-882.00 area on the
SP futures and the 1185.00-1186.25 area on the Nasdaq
futures. If the market pops up there and reverses on Monday,
it should set up a good shorting opportunity. If the market
doesn't have trouble at those areas, then the next
resistance is at the 889.75-890.25 area on the SP futures
and the 1195.00-1196.00 area on the Nasdaq futures. A turn
from those areas is likely, so be alert for a reversal if
the market gets there and the move fizzles out. If those are
not a problem, then the 897.00-898.00 area on the SP futures
and the 1201.50-1203.00 area on the Nasdaq futures would be
next. If those aren't rejected, then we could go for the
904.50 area on the SP futures. If the market has a big
follow-through day on the upside, then look for good
resistance up at the 917.00-918.00 area on the SP futures.
The initial support is at the 856.00-855.75 area on the SP
futures and the 1153.25-1152.50 area on the Nasdaq futures.
If those areas do not hold, then it looks like the 849.00-
848.00 area on the SP futures and the 1148.00-1146.50 area
on the Nasdaq futures could be pivotal. If the market
doesn't quickly reverse from those areas, then the next key
support is down at the 839.00-838.50 area on the SP futures
and the 1125.00-1123.50 area on the Nasdaq futures. The
trends turned up when that area was broken and held on
Friday. If those areas are broken, then the next support is
around the 835.00 area on the SP futures and the 1117.50
area on the Nasdaq futures, and if those are broken then
there should be strong support at the 825.50-825.00 area on
the SP and the 1106.75-1105.50 area on the Nasdaq futures.
If those are broken, then the Friday lows at the 817.00
level on the SP futures and the 1095.00 level on the Nasdaq
futures need to hold, otherwise the market is in for a bad
day.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
880.50-882.00
889.75-890.25
897.00-898.00
904.50
917.00-918.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
856.00-855.75
849.00-848.00
839.00-838.50
835.00
825.50-825.00
817.00
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1185.00-1186.25
1195.00-1196.00
1201.50-1203.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.25-1152.50
1148.00-1146.50
1125.00-1123.50
1117.50
1106.75-1105.50
1095.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8685-8691
8749-8754
8820-8828
December 2008 Dow futures support
symbols: emini = ymz8
8455-8452
8397-8390
8308-8300
8270
8171-8166
8116
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Sunday, December 07, 2008
TradeStalker's RBI Update 12/04/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 4 / 2008
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 12/4/2008
A lower open reversed and the SP futures went from 854.00 to
875.50 before noon. The action turned a bit choppy, but the
SP futures fell to 855.00 and a test of the morning low
brought in buying. The SP futures bounced to 870.00 and
reversed, and the toppy action finally showed itself as the
market rolled over. The SP futures dropped to 832.00 and the
Nasdaq futures reached 1109.00, right at the KEY support at
the area on the SP futures and the 1110.00-1108.50 area on
the Nasdaq futures. The market bounced into the close as the
SP and Nasdaq futures reached 848.50 and 1135.50,
respectively.
We get the Employment report before the open on Friday. My
indicators are neutral, and not giving a strong bias in
either direction. The market has been in a trading range for
awhile now, and the SP futures tested the upper end and fell
back to around the middle of the range. Maybe the Employment
report will be the thing to get the market out of the range.
As stated above, the key support held on both the SP and
Nasdaq futures on Friday, so a retest that reverses back up
could set up a trade on the long side. On the other side of
the coin, the drop in the last 90 minutes left longs trapped
and looking to get out at even or better, so if there is a
move up towards the Wednesday highs that fizzles and
reverses, a good trade on the short side sets up. Since the
market has been range-bound, look to get long on the drops
as soon as they reverse to the upside, and short the rallies
as soon as the move loses momentum and begins to roll over.
Now, if there is a breakout of the Thursday range, and the
breakout isn't reversed in about 10 minutes, then we could
see a good trend develop and give a directional move that
lasts into the closing minutes of trading.
Most of the big up or down opens have reversed in the first
5 minutes lately. If there is a big move on the open, it
should set up a reversal for a trade. Aside from that, look
for a reversal in the first 20-40 minutes and then a decent
trend should develop.
The first hurdle on Friday is at the 850.25 level on the SP
futures and the 1135.00 level on the Nasdaq futures. If
those are exceeded, then the first key areas should be at
the 853.75-854.50 area on the SP futures and the 1140.50-
1141.50 area on the Nasdaq futures. That area has been
traded a lot this week, so if the market gets through that
area then we should be on the way towards the 862.00-863.00
area on the SP futures and the 1146.50-1147.50 area on the
Nasdaq futures. If the market isn't rejected there, then the
870.25 level on the SP futures and the 1156.75 level on the
Nasdaq futures would be key resistance. If the market
doesn't hesitate and goes through those levels, then the key
resistance is at the 874.50-875.50 area on the SP futures
and the 1168.00-1169.00 area on the Nasdaq futures. If there
isn't a reversal from up there, then we should test pretty
good resistance at the 880.50-882.00 area on the SP futures
and the 1174.50-1175.50 area on the Nasdaq futures.
The initial support is at the 843.25-843.00 area on the SP
futures and the 1125.50-1124.50 area on the Nasdaq futures.
If those are broken early and not quickly reversed, then a
test of the key support at the 832.00-831.50 area on the SP
futures and the 1110.00-1108.50 area on the Nasdaq futures
could be in the cards. If the market reverses back up from
those areas, it should set up a good trade on the long side.
However, if those are broken and not quickly reversed, then
the next good support is down at the 823.50-823.00 area on
the SP futures and the 1101.75-1101.00 area on the Nasdaq
futures. If the market gets there, it must quickly reverse,
otherwise the 818.00-817.75 area on the SP futures and the
1091.00-1090.00 area on the Nasdaq futures are in the cards.
Those areas are major support. If broken, then there is some
support at the 813.00-812.50 area on the SP futures, and
possibly a drop towards the 802.00-799.50 area on the SP
futures if things turn ugly.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
850.25
853.75-854.50
862.00-863.00
870.25
874.50-875.50
880.50-882.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
843.25-843.00
832.00-831.50
823.50-823.00
818.00-817.75
813.00-812.50
802.00-799.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1135.00
1140.50-1141.50
1146.50-1147.50
1156.75
1168.00-1169.00
1174.50-1175.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1125.50-1124.50
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8411
8468-8475
8559-8563
8614
8634-8639
8685-8691
December 2008 Dow futures support
symbols: emini = ymz8
8370-8367
8255-8250
8180-8175
8136-8132
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 4 / 2008
(Published Since 1996)
...............................................
Dateline: 6:29 pm eastern time, 12/4/2008
A lower open reversed and the SP futures went from 854.00 to
875.50 before noon. The action turned a bit choppy, but the
SP futures fell to 855.00 and a test of the morning low
brought in buying. The SP futures bounced to 870.00 and
reversed, and the toppy action finally showed itself as the
market rolled over. The SP futures dropped to 832.00 and the
Nasdaq futures reached 1109.00, right at the KEY support at
the area on the SP futures and the 1110.00-1108.50 area on
the Nasdaq futures. The market bounced into the close as the
SP and Nasdaq futures reached 848.50 and 1135.50,
respectively.
We get the Employment report before the open on Friday. My
indicators are neutral, and not giving a strong bias in
either direction. The market has been in a trading range for
awhile now, and the SP futures tested the upper end and fell
back to around the middle of the range. Maybe the Employment
report will be the thing to get the market out of the range.
As stated above, the key support held on both the SP and
Nasdaq futures on Friday, so a retest that reverses back up
could set up a trade on the long side. On the other side of
the coin, the drop in the last 90 minutes left longs trapped
and looking to get out at even or better, so if there is a
move up towards the Wednesday highs that fizzles and
reverses, a good trade on the short side sets up. Since the
market has been range-bound, look to get long on the drops
as soon as they reverse to the upside, and short the rallies
as soon as the move loses momentum and begins to roll over.
Now, if there is a breakout of the Thursday range, and the
breakout isn't reversed in about 10 minutes, then we could
see a good trend develop and give a directional move that
lasts into the closing minutes of trading.
Most of the big up or down opens have reversed in the first
5 minutes lately. If there is a big move on the open, it
should set up a reversal for a trade. Aside from that, look
for a reversal in the first 20-40 minutes and then a decent
trend should develop.
The first hurdle on Friday is at the 850.25 level on the SP
futures and the 1135.00 level on the Nasdaq futures. If
those are exceeded, then the first key areas should be at
the 853.75-854.50 area on the SP futures and the 1140.50-
1141.50 area on the Nasdaq futures. That area has been
traded a lot this week, so if the market gets through that
area then we should be on the way towards the 862.00-863.00
area on the SP futures and the 1146.50-1147.50 area on the
Nasdaq futures. If the market isn't rejected there, then the
870.25 level on the SP futures and the 1156.75 level on the
Nasdaq futures would be key resistance. If the market
doesn't hesitate and goes through those levels, then the key
resistance is at the 874.50-875.50 area on the SP futures
and the 1168.00-1169.00 area on the Nasdaq futures. If there
isn't a reversal from up there, then we should test pretty
good resistance at the 880.50-882.00 area on the SP futures
and the 1174.50-1175.50 area on the Nasdaq futures.
The initial support is at the 843.25-843.00 area on the SP
futures and the 1125.50-1124.50 area on the Nasdaq futures.
If those are broken early and not quickly reversed, then a
test of the key support at the 832.00-831.50 area on the SP
futures and the 1110.00-1108.50 area on the Nasdaq futures
could be in the cards. If the market reverses back up from
those areas, it should set up a good trade on the long side.
However, if those are broken and not quickly reversed, then
the next good support is down at the 823.50-823.00 area on
the SP futures and the 1101.75-1101.00 area on the Nasdaq
futures. If the market gets there, it must quickly reverse,
otherwise the 818.00-817.75 area on the SP futures and the
1091.00-1090.00 area on the Nasdaq futures are in the cards.
Those areas are major support. If broken, then there is some
support at the 813.00-812.50 area on the SP futures, and
possibly a drop towards the 802.00-799.50 area on the SP
futures if things turn ugly.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
850.25
853.75-854.50
862.00-863.00
870.25
874.50-875.50
880.50-882.00
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
843.25-843.00
832.00-831.50
823.50-823.00
818.00-817.75
813.00-812.50
802.00-799.50
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1135.00
1140.50-1141.50
1146.50-1147.50
1156.75
1168.00-1169.00
1174.50-1175.50
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1125.50-1124.50
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8411
8468-8475
8559-8563
8614
8634-8639
8685-8691
December 2008 Dow futures support
symbols: emini = ymz8
8370-8367
8255-8250
8180-8175
8136-8132
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Thursday, December 04, 2008
"10 Steps to Professional Day Trading"
"10 Steps to Professional Day Trading"
By Mike Reed
Everyone trades a little differently. The trading method outlined below is MY personal approach to trading. This method has worked for me for the last 26+ years, and has helped me to avoid big draw downs since the mid 1980's. My trading strategy has helped me to make a good living trading.
It takes some time to learn my method of trading because it's based on tape reading and getting a "feel" for the market. This is *not* about a fast, easy formula to "get rich quick" while you sweat out every trade. Instead, this is about developing confidence and trading consistently without fear and without big draw downs.
Here is my 10 Step Approach to Learning My Style of Trading:
1. Practice exiting trades at break-even, using a one-tick target, a two or three tick soft stop (mental stop) and a 1.5 point hard stop. Never allow the market hit your hard stop. Exit by moving your target toward your hard stop, not by moving your hard stop towards your target. With time, all of this must become a reflex. You won't always be able to keep your losses down to 2 ticks, but only on rare occasions should you find yourself letting the market hit your hard stop. ("Rarely" means only about once every 50-100 trades after you get the hang of it.)
Even though your entries won't be good enough in the beginning to make a profit trading these tight soft stops, your entries will gradually improve until you turn the corner and become profitable.
Learn exits and entries separately. Don't let the one influence the other.
Taking losses this way takes dedication and discipline, so stick with it. It's the key to confident trading. If you never take large losses (and rarely medium size ones), the fear of loss pretty much goes away, and your confidence grows. Especially after your entries improve enough to support a "scalping" type exit strategy.
2. Every trade in all market conditions begins as a scalp. Let me clarify this: if you're in a choppy market and you're looking to get small gains, like a point or so, manage your initial hard and soft stops exactly the same way you would in a quick trend or any other type of market. That means keeping losses as close to 2-3 ticks as possible, taking lots of break even trades and exiting every time the market doesn't give you instant gratification (within a minute or so).
No matter what the market is doing, you must demand that it moves in your favor soon after you enter, otherwise you get out as close to break even as possible. This means you'll be closing a lot of trades near break-even within the first minute. This is the foundation of learning to trade for consistent gains.
3. Don't worry about the commissions on break-even trades. If you do, you'll hold on to losing positions, begging them to turn around for you. This is called hoping. In this business, this type of hoping is the kiss of death. Your money-making trades must move your way in a few minutes or less. When trades don't act right in the first minute or so, most of them will hit your hard stops.
So don't get hung up on the fact that your broker loves you. Who cares if he/she makes a living?
Your concern is limiting losses. I care more about this than anything else in trading. (Well-timed entries make my tight soft stops possible, so they're almost as important as the exits.)
4. Practice your entries until your timing is so good that you can reasonably expect the market to go your way immediately, before it goes more than 2-3 ticks against you. This is not easy at first, but if you stick with it, you'll get it.
5. Practice fading the emotional extremes on your entries. (Fading means entering in the opposite direction of the market's last move.) When an extreme NYSE-Tick (often above 1000 or below -1000) occurs at the same time the market accelerates into a support or resistance area, look for a price stall or reversal and fade the move. Fade the emotion.
6. Rarely, if ever, chase the market on your entries. Wait for a pullback to get onboard a trend.
I favor shorts over longs... I can get out of a short position quicker than I can get out of a long position. I don't know why. I like to say that I "see gravity better than helium." In the rare strong-trending markets where I may chase an entry, it's going to be a down trend, not an uptrend. I don't trust up trends enough to chase them. Maybe it's just a personal quirk and maybe not. I honestly don't know.
But it's interesting to note that most (not all) professional traders I've met are Bears and prefer short positions over longs. You should give it some thought and find out which direction works better for you. Are your losses bigger on shorts or longs? Specialize in one direction and trade the other direction only when things are looking real good.
7. Never let a gain turn into a loss. This will mean getting out of most trades a little (or a lot) too soon. You just have to live with it. Swing for home runs (greed) will ruin your trading. There is no mechanical formula that I know of, (such as, "move your stop to break even after you get 3 ticks gain") that will work. You have to develop a feel for how the market is acting at the moment, and use your feel to reduce your target or advance your hard stop. This comes with experience.
8. Develop a feel for the big picture movements of the market, not just the intraday action. Use the end-of-day market internals to analyze the market's mood and develop a daily bias.
9. Practice does not make perfect. Only perfect practice makes perfect. I learned this in my younger years, pursuing a professional baseball career. Perfect practice will keep your losses smaller than your gains in the trading business.
There are a lot of things involved in perfect practice. When you get tired, or when the phone rings, or whatnot, don't trade. Always, always exit trades exactly the way I've outlined above on every trade in every market condition. Always wait for your pitch, the well-timed setup for entering. Don't practice sloppy entries just because you're bored. Only perfect practice will help you. Anything else just amounts to practicing bad habits.
10. Get a mentor. I traded for 6 years before I learned to keep my losses small. My trading turned around immediately after I met my mentor and talked to him on the phone for one week. Is there any serious profession that you can learn without a mentor? Maybe there is, but I don't know of any. It's certainly not trading.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
By Mike Reed
Everyone trades a little differently. The trading method outlined below is MY personal approach to trading. This method has worked for me for the last 26+ years, and has helped me to avoid big draw downs since the mid 1980's. My trading strategy has helped me to make a good living trading.
It takes some time to learn my method of trading because it's based on tape reading and getting a "feel" for the market. This is *not* about a fast, easy formula to "get rich quick" while you sweat out every trade. Instead, this is about developing confidence and trading consistently without fear and without big draw downs.
Here is my 10 Step Approach to Learning My Style of Trading:
1. Practice exiting trades at break-even, using a one-tick target, a two or three tick soft stop (mental stop) and a 1.5 point hard stop. Never allow the market hit your hard stop. Exit by moving your target toward your hard stop, not by moving your hard stop towards your target. With time, all of this must become a reflex. You won't always be able to keep your losses down to 2 ticks, but only on rare occasions should you find yourself letting the market hit your hard stop. ("Rarely" means only about once every 50-100 trades after you get the hang of it.)
Even though your entries won't be good enough in the beginning to make a profit trading these tight soft stops, your entries will gradually improve until you turn the corner and become profitable.
Learn exits and entries separately. Don't let the one influence the other.
Taking losses this way takes dedication and discipline, so stick with it. It's the key to confident trading. If you never take large losses (and rarely medium size ones), the fear of loss pretty much goes away, and your confidence grows. Especially after your entries improve enough to support a "scalping" type exit strategy.
2. Every trade in all market conditions begins as a scalp. Let me clarify this: if you're in a choppy market and you're looking to get small gains, like a point or so, manage your initial hard and soft stops exactly the same way you would in a quick trend or any other type of market. That means keeping losses as close to 2-3 ticks as possible, taking lots of break even trades and exiting every time the market doesn't give you instant gratification (within a minute or so).
No matter what the market is doing, you must demand that it moves in your favor soon after you enter, otherwise you get out as close to break even as possible. This means you'll be closing a lot of trades near break-even within the first minute. This is the foundation of learning to trade for consistent gains.
3. Don't worry about the commissions on break-even trades. If you do, you'll hold on to losing positions, begging them to turn around for you. This is called hoping. In this business, this type of hoping is the kiss of death. Your money-making trades must move your way in a few minutes or less. When trades don't act right in the first minute or so, most of them will hit your hard stops.
So don't get hung up on the fact that your broker loves you. Who cares if he/she makes a living?
Your concern is limiting losses. I care more about this than anything else in trading. (Well-timed entries make my tight soft stops possible, so they're almost as important as the exits.)
4. Practice your entries until your timing is so good that you can reasonably expect the market to go your way immediately, before it goes more than 2-3 ticks against you. This is not easy at first, but if you stick with it, you'll get it.
5. Practice fading the emotional extremes on your entries. (Fading means entering in the opposite direction of the market's last move.) When an extreme NYSE-Tick (often above 1000 or below -1000) occurs at the same time the market accelerates into a support or resistance area, look for a price stall or reversal and fade the move. Fade the emotion.
6. Rarely, if ever, chase the market on your entries. Wait for a pullback to get onboard a trend.
I favor shorts over longs... I can get out of a short position quicker than I can get out of a long position. I don't know why. I like to say that I "see gravity better than helium." In the rare strong-trending markets where I may chase an entry, it's going to be a down trend, not an uptrend. I don't trust up trends enough to chase them. Maybe it's just a personal quirk and maybe not. I honestly don't know.
But it's interesting to note that most (not all) professional traders I've met are Bears and prefer short positions over longs. You should give it some thought and find out which direction works better for you. Are your losses bigger on shorts or longs? Specialize in one direction and trade the other direction only when things are looking real good.
7. Never let a gain turn into a loss. This will mean getting out of most trades a little (or a lot) too soon. You just have to live with it. Swing for home runs (greed) will ruin your trading. There is no mechanical formula that I know of, (such as, "move your stop to break even after you get 3 ticks gain") that will work. You have to develop a feel for how the market is acting at the moment, and use your feel to reduce your target or advance your hard stop. This comes with experience.
8. Develop a feel for the big picture movements of the market, not just the intraday action. Use the end-of-day market internals to analyze the market's mood and develop a daily bias.
9. Practice does not make perfect. Only perfect practice makes perfect. I learned this in my younger years, pursuing a professional baseball career. Perfect practice will keep your losses smaller than your gains in the trading business.
There are a lot of things involved in perfect practice. When you get tired, or when the phone rings, or whatnot, don't trade. Always, always exit trades exactly the way I've outlined above on every trade in every market condition. Always wait for your pitch, the well-timed setup for entering. Don't practice sloppy entries just because you're bored. Only perfect practice will help you. Anything else just amounts to practicing bad habits.
10. Get a mentor. I traded for 6 years before I learned to keep my losses small. My trading turned around immediately after I met my mentor and talked to him on the phone for one week. Is there any serious profession that you can learn without a mentor? Maybe there is, but I don't know of any. It's certainly not trading.
By Mike Reed
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
TradeStalker's RBI Update 12/03/08
.................................................
TradeStalker's
R.B.I. Trader's Update
12 / 3 / 2008
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 12/3/2008
The market opened lower on Wednesday and the SP futures
reversed and bounced 10 points from 826.50 to 836.75 before
turning back down. The market went back to test the lows and
quickly reversed back to the upside. That started a trend up
move that only paused at resistance zones on the way to
864.75 on the SP futures. After a dip, they popped back up
to 864.75 and reversed, and with a double top in place the
market sold off pretty hard. The SP futures reached 834.00
and then got turned around and rallied back over the 860
level. The pop over that level reversed from 861.75 and the
SP futures dropped to 847.00. That level became support as
the market bounced around between there and 859 on the SP
futures. With about 20 minutes left in stock trading the SP
futures were over 860, and a dip held 861.00 with 13 minutes
left in stock trading. That brought in more buying as the SP
futures pushed through the 870.75-871.50 zone and then
backed off a bit into the close.
We got the two-sided trading action on Wednesday, with some
good swings in both directions. The intraday chart pattern
is looking like a big channel/ wedge and could be vulnerable
to a decent sized selloff IF the Wednesday afternoon lows
are not held. If the market is going to continue to prove
itself strong however, then the initial support shouldn't be
broken.
If the market opens higher, then look for a reversal in the
first 20 minutes to set up a great shorting opportunity. If
that plays out, the first decent pullback should set up a
good buying opportunity, especially if the initial support
is reached and reversed. If that doesn't occur and that
support is broken and held, then there are other support
zones that will need to hold. The 848.00-847.00 area will
need to hold, otherwise the market could be rolling over for
a pretty sharp drop.
The initial resistance is at the 872.75-873.75 area on the
SP futures and the 1164.75-1166.50 area on the Nasdaq
futures. If those are not sold, then a move towards the
880.50-882.00 area on the SP futures and the 1171.50-1173.00
area on the Nasdaq futures would set up a good shorting
opportunity if the market gets up there and the move stalls
out. If those areas are exceeded and not quickly reversed,
then the 885.50-886.00 area on the SP futures and the
1179.75-1181.50 area on the Nasdaq futures would be next. If
there is a strong rally, look for good resistance at the
889.75-890.25 area on the SP futures and the 1186.50-1188.00
area on the Nasdaq futures.
The initial support is at the 859.00-858.00 area on the SP
futures and the 1153.50-1152.50 area on the Nasdaq futures.
If those areas don't hold, then the 848.00-847.00 area on
the SP futures and the 1138.50-1137.50 area on the Nasdaq
futures is a key area. If it's held, look for a bounce
that's tradable. However, if those areas do not hold, then
we could head for the 834.00 level on the SP futures and the
1116.75 level on the Nasdaq futures. That was the Wednesday
afternoon lows, and if broken, then the key support is just
below at the 832.00-831.50 area on the SP futures and the
1110.00-1108.50 area on the Nasdaq futures. If the market
cannot reverse from those areas, then we could be headed
back towards the 823.50-823.00 area on the SP futures and
the 1101.75-1101.00 area on the Nasdaq futures. If the
market is sold off pretty hard, then look for a reversal
from around the 818.00-817.75 area on the SP futures and the
1091.00-1090.00 area on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
872.75-873.75
880.50-882.00
885.50-886.00
889.75-890.25
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
859.00-858.00
848.00-847.00
834.00
832.00-831.50
823.50-823.00
818.00-817.75
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1164.75-1166.50
1171.50-1173.00
1179.75-1181.50
1186.50-1188.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.50-1152.50
1138.50-1137.50
1116.75
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8620-8625
8685-8691
8724-8731
8754-8760
December 2008 Dow futures support
symbols: emini = ymz8
8498-8492
8401-8395
8278
8264-8257
8180-8175
8136-8132
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
TradeStalker's
R.B.I. Trader's Update
12 / 3 / 2008
(Published Since 1996)
...............................................
Dateline: 6:12 pm eastern time, 12/3/2008
The market opened lower on Wednesday and the SP futures
reversed and bounced 10 points from 826.50 to 836.75 before
turning back down. The market went back to test the lows and
quickly reversed back to the upside. That started a trend up
move that only paused at resistance zones on the way to
864.75 on the SP futures. After a dip, they popped back up
to 864.75 and reversed, and with a double top in place the
market sold off pretty hard. The SP futures reached 834.00
and then got turned around and rallied back over the 860
level. The pop over that level reversed from 861.75 and the
SP futures dropped to 847.00. That level became support as
the market bounced around between there and 859 on the SP
futures. With about 20 minutes left in stock trading the SP
futures were over 860, and a dip held 861.00 with 13 minutes
left in stock trading. That brought in more buying as the SP
futures pushed through the 870.75-871.50 zone and then
backed off a bit into the close.
We got the two-sided trading action on Wednesday, with some
good swings in both directions. The intraday chart pattern
is looking like a big channel/ wedge and could be vulnerable
to a decent sized selloff IF the Wednesday afternoon lows
are not held. If the market is going to continue to prove
itself strong however, then the initial support shouldn't be
broken.
If the market opens higher, then look for a reversal in the
first 20 minutes to set up a great shorting opportunity. If
that plays out, the first decent pullback should set up a
good buying opportunity, especially if the initial support
is reached and reversed. If that doesn't occur and that
support is broken and held, then there are other support
zones that will need to hold. The 848.00-847.00 area will
need to hold, otherwise the market could be rolling over for
a pretty sharp drop.
The initial resistance is at the 872.75-873.75 area on the
SP futures and the 1164.75-1166.50 area on the Nasdaq
futures. If those are not sold, then a move towards the
880.50-882.00 area on the SP futures and the 1171.50-1173.00
area on the Nasdaq futures would set up a good shorting
opportunity if the market gets up there and the move stalls
out. If those areas are exceeded and not quickly reversed,
then the 885.50-886.00 area on the SP futures and the
1179.75-1181.50 area on the Nasdaq futures would be next. If
there is a strong rally, look for good resistance at the
889.75-890.25 area on the SP futures and the 1186.50-1188.00
area on the Nasdaq futures.
The initial support is at the 859.00-858.00 area on the SP
futures and the 1153.50-1152.50 area on the Nasdaq futures.
If those areas don't hold, then the 848.00-847.00 area on
the SP futures and the 1138.50-1137.50 area on the Nasdaq
futures is a key area. If it's held, look for a bounce
that's tradable. However, if those areas do not hold, then
we could head for the 834.00 level on the SP futures and the
1116.75 level on the Nasdaq futures. That was the Wednesday
afternoon lows, and if broken, then the key support is just
below at the 832.00-831.50 area on the SP futures and the
1110.00-1108.50 area on the Nasdaq futures. If the market
cannot reverse from those areas, then we could be headed
back towards the 823.50-823.00 area on the SP futures and
the 1101.75-1101.00 area on the Nasdaq futures. If the
market is sold off pretty hard, then look for a reversal
from around the 818.00-817.75 area on the SP futures and the
1091.00-1090.00 area on the Nasdaq futures.
December 2008 SP futures resistance
symbols: emini = esz8 / big contract =spz8
872.75-873.75
880.50-882.00
885.50-886.00
889.75-890.25
December 2008 SP futures support
symbols: emini = esz8 / big contract =spz8
859.00-858.00
848.00-847.00
834.00
832.00-831.50
823.50-823.00
818.00-817.75
December 2008 Nasdaq futures resistance
symbols: emini = nqz8 / big contract = ndz8
1164.75-1166.50
1171.50-1173.00
1179.75-1181.50
1186.50-1188.00
December 2008 Nasdaq futures support
symbols: emini = nqz8 / big contract = ndz8
1153.50-1152.50
1138.50-1137.50
1116.75
1110.00-1108.50
1101.75-1101.00
1091.00-1090.00
December 2008 Dow futures resistance
symbols: emini = ymz8
8620-8625
8685-8691
8724-8731
8754-8760
December 2008 Dow futures support
symbols: emini = ymz8
8498-8492
8401-8395
8278
8264-8257
8180-8175
8136-8132
---------------------------
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2008 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
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