TradeStalker's
R.B.I. Trader's Update
2 / 19 / 2009
(Published Since 1996)
...............................................
Dateline: 6:42 pm eastern time, 2/19/2009
Early strength set the table for a trade on the short side
on Thursday and even waiting for the break of 792 gave a
good profit as the ES dropped to updated support at 787
before bouncing. The bounces couldn't stick and after
getting one that reached 789.75, the ES pulled back and then
bounced to a lower high at 787.25 and reversed. The rest of
the day the ES traded by the numbers given in the intraday
updates as the ES chopped its way to a 775.00 low in the
final minutes of trading.
All of the indicators listed last night are even more
compressed. At Thursday's close my RBI Oscillator dropped
into buy mode and along with that, the McClellan Oscillator
reached -256 at Thursday's close. This set of oversold
readings happens rarely and usually appears at a good
trading low as the market then reverts to the mean. The only
ingredient missing from having everything line up is the
absence of some Vix buy signals. This is bothersome for the
bullish setup, as a rally from here would likely be short
lived as the crowd is still too bullish despite recent
carnage.
So, the fumes are in the air for a decent rally but some
proof of strength is needed. We get the CPI before the open
on Friday and maybe it will give the market a reason to
rally. The key will be getting the ES over the initial
resistance areas and not quickly reversing per usual of
late. Unless that occurs, the bounces will continue to set
up good shorting opportunities and it keeps the door open
for the SP500 to join the Dow by heading back towards the
741-739 area. However, if the market can get over the
initial resistance and not fail, then a test of the Thursday
highs would be a key test for the market. The ES made a high
on Thursday at 796.75, which is the high of the low day thus
far. The ES settled at 779.50 for two straight days and a
close over 796.75 on Friday is needed to start a bottoming
process.
March 2009 SP futures resistance
symbols: emini = esh9 / big contract =sph9
783.50-784.25
789.50-790.00
794.75-795.25
800.50-801.25
805.50-806.00
March 2009 SP futures support
symbols: emini = esh9 / big contract =sph9
775.50-775.00
772.00-771.50
764.50-763.50
753.00-751.50
741-739
March 2009 Nasdaq futures resistance
symbols: emini = nqh9 / big contract = ndh9
1176.50-1177.00
1183.50-1184.50
1193.50-1194.00
1203.50-1204.00
1210.50-1211.50
March 2009 Nasdaq futures support
symbols: emini = nqh9 / big contract = ndh9
1165.50-1165.00
1160.50-1159.75
1152.50-1150.50
1147.25-1146.50
March 2009 Dow futures resistance
symbols: emini = ymh9
7502-7506
7538-7542
7595-7599
7638-7643
7694-7699
March 2009 Dow futures support
symbols: emini = ymh9
7427-7424
7400-7396
7334-7329
7262-7258
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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) 2009 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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