TradeStalker's
R.B.I. Trader's Update
12 / 7 / 2009
(Published Since 1996)
...............................................
Dateline: 7:19 pm eastern time, 12/7/2009
The market opened higher on Monday and continued to be
strong until about 20-30 minutes into the day. The move
fizzled out after reaching 1110.25, then pulled back to
1105.50 where the market found decent buying come in. The
bounce back to test the 1110 level on the ES and 1794 level
on the NQ didn't stick, as those levels were quickly
rejected, and with the upside losing momentum the market
started to roll over. The move picked up steam and the
averages all fell to new lows for the day. The 1100.00 level
on the ES held and the market was able to bounce back into
the close.
The market continues to have trouble holding on to its
gains, but the market has also been able to come right back
after selling off. This trading range has gone on for quite
some time now, and the volatility bands on the daily close-
only chart are tighter than they have been in over a year.
As stated in the Sunday night update, this kind of
compression is usually followed by a nice sized directional
move. A close over 1111 or under 1091 on the SP500 cash is
needed to break the current range.
On Monday the futures settled over fair value one again,
factoring in a higher open for stocks. We had inside days
for the futures on Monday, so beware that a move out of the
Monday ranges will have good odds or reversing. For now,
look for the bounces that stall/reverse to set up shorting
opportunities, and then for a test of the Monday lows to
potentially set up a double bottom. If the 1100 level on the
ES is broken, and not quickly reversed, then it must stay
over the 1095.50-1095.00 double bottom area from last Friday
to avoid a trip back towards the high 1080's again. On the
upside, if the market can get back over the initial
resistance and not reverse, then we could revisit the
1112.25-1113.00 area where the market should either reverse
once again, or find more buying come back in and possibly
run the ES back towards the 1119.50-1121.00 area before the
market finds the upside difficult.
** Each evening we are going to try to upload the instant
messenger log for that day. You can go here to read the log:
http://www.tradestalker.com/log.htm **
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1105.75-1106.75
1109.50-1110.25
1112.25-1113.00
1115.50-1115.75
1119.50-1121.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1100.50-1100.00
1098.75-1098.25
1095.50-1095.00
1088.25-1087.50
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1787.50-1788.50
1793.50-1794.00
1798.00-1798.50
1802.00-1803.50
1807.75-1808.50
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1779.75-1779.00
1774.00-1772.75
1768.75-1768.00
1759.00-1757.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10409-10413
10433-10436
10452-10456
10490-10494
10521-10529
December 2009 Dow futures support
symbols: emini = ymz9
10352-10348
10334-10331
10302-10297
10244-10240
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed 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)
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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