TradeStalker's
R.B.I. Trader's Update
11 / 16 / 2009
(Published Since 1996)
...............................................
Dateline: 9:46 pm eastern time, 11/16/2009
The market gapped up on Monday, and like a week before, the
move continued to the upside in a trend up move. The
breakout of the trading range brought in buying as the ES
reached a new high for the year at 1111.00 by early
afternoon. That stalled out and a pullback stopped and
turned up from 1108.00 trend-up support, and the market
bounced back. We were on reversal alert from the 1112.50,
and the ES popped to 1112.25 and reversed at 2:48 pm. The
break of 1110.50 put the pressure on, and a steady drop to
1103.50 occurred before a bounce. That was a nice move even
if one waited for that break of 1110.50 for a trigger. After
stabilizing at 1103.50, the market bounced back into the
close.
The good news is that the market broke out of the trading
range that developed last week. The bad new is that the
market is still at a resistance zone, and the rally didn't
stick. The action felt toppy on Monday, with buyers backing
off until reaching the top of last week's range on the ES.
The fact that the market was able to hold at that area and
bounce is a plus. Now the initial support areas need to hold
to avoid a topping process.
We get the PPI and also the Industrial Production and
Capacity Utilization data before stocks open on Tuesday. If
there is early strength, it should set up a very good
shorting opportunity. If that plays out, the first decent
pullback needs to hold the 1103.50-1102.50 area on the ES,
otherwise it should go for the 1097.75-1096.75 area quickly
and then see if a reversal is in the cards. If there is a
good bounce instead early on Tuesday, then expect the move
to fail and set up a shorting opportunity, especially if the
Monday high areas are reached. If those highs are tested,
and the move loses steam or that area is rejected, it will
set up a good reward/risk opportunity on the short side.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1108.00-1108.50
1112.25-1112.75
1117.75-1118.50
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1103.50-1102.50
1097.75-1096.75
1092.75-1092.00
1086.75-1086.25
1083.00-1082.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1806.50-1807.25
1812.75-1813.75
1817.50-1818.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1800.75-1800.00
1792.50-1791.50
1786.50-1785.75
1779.00-1778.50
1773.00-1772.00
December 2009 Dow futures resistance
symbols: emini = ymz9
10380-10383
10402-10406
10454-10458
December 2009 Dow futures support
symbols: emini = ymz9
10336-10332
10283-10278
10235-10232
10197-10193
10161-10158
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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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