TradeStalker's
R.B.I. Trader's Update
12 / 2 / 2009
(Published Since 1996)
...............................................
Dateline: 6:34 pm eastern time, 12/2/2009
The ES popped into our sell zone in the first 10 minutes on
Wednesday, and it dropped from 1111.00 to 1107.25 before
reversing. Members were told via instant message to cover
1/2 at 1108.50 or better, and tighten a stop, on the way
down to 1107.25. That protected small profits and then the
ES ran up to a new yearly high at 1115.50 before reversing
again. The 1111.50 level had to hold to avoid a top, and the
break triggered a 7 point drop down to a 1104.25 low. The
market refused to break the 1103-1102 area, but had trouble
on the upside still. The updated resistance given at the
1107.75-1108.50 area then offered 2 scalp trades before a
thin and choppy bounce in the last hour of trading.
The SP500 cash and futures opened and closed at about the
same levels on Wednesday, after the temporary breakout in
the morning. The market is beginning to get a bit
overbought, and the sentiment has gone from overly bearish
to very bullish short term. If there is one more decent
rally, and it also fails, then the ingredients will be there
for a decent sized selloff. For now however, the market will
be "okay" as long as the 1105.00-1104.25 area is held. If
the market is still in good shape, then reaching the
1119.50-1121.00 could be in the cards before a decent
selloff occurs. However, if that 1105.00-1104.25 area
breaks, then the downside could pick up some steam and break
towards the 1097.25-1096.25 area before there is a reversal
attempt.
The market will likely give us two-sided action on Thursday
in front of Friday's Employment numbers. Look for early
weakness to reverse to set up a trade on the long side. If
that plays out, beware of a reversal when the upside
momentum stalls/ reverses, and especially if there is a
straight up move towards the 1115.00-1115.50 zone. If there
is a buying frenzy early in the day, that 1119.50-1121.00
area could be seen and the action around that zone should
then be telling as for the short and intermediate term
outlook.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1109.25-1109.75
1111.75-1112.50
1115.00-1115.50
1119.50-1121.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1105.00-1104.25
1102.75-1102.25
1097.25-1096.25
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1792.75-1794.00
1798.00-1799.00
1805.50-1806.50
1811.00-1812.25
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1787.00-1786.00
1782.00-1781.00
1777.50-1776.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10449-10452
10478-10482
10502-10505
10542-10546
December 2009 Dow futures support
symbols: emini = ymz9
10416-10412
10404-10401
10354-10349
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REMINDER:
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real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm
---------------------------
Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
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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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