02/21/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 21 / 2011

(Published Since 1996)

...............................................

Dateline: 4:36 pm eastern time, 2/21/2011

After holding 1337 early on Friday, the ES rallied to
another new 52 week high at 1342.75 and stalled out. A
selloff to 1336.25 occurred, then after getting back over
1340 the market got another gear and rallied into the close.

The melt-up continues and about everything has gone up
lately. The market is on steroids, courtesy of the Fed, and
steroids cause unintended consequences. So far it hasn't
done anything wrong. It's still flabbergasting though that
the SP500 can rally almost 67 points in 3 weeks with barely
pulling back. When this ends, or when the end starts, it
will likely be an unintended consequence that sends the
market south fast.

The Monday action for the ES and NQ shows how easily the
market can fall apart when this move ends. The SP500 is 12%
above the 200 day moving average, and that has been near the
maximum even in good bull markets. The SP500 is +101% from
low to high in 23 months so far. The only other bull market
cycle to do that was the 1935-1937 bull market which doubled
in 24 months. Oddly, the NQ has had 3 days in a row with
lower high and a lower low while the blue chips made higher
highs, a bearish divergence at 2400 on the Nasdaq 100 cash
and futures.

On Tuesday we get Case-Shiller Index before the open and
then the Consumer Confidence survey release at 10 am. A
higher open is a short, as bids should dry up at best. If
the market opens lower, it should bounce right back from
above the 1328-1327 area if the market going to try hanging
in for a run-up. Don't expect a bounce to stick though, as
the 1336 area would become a key resistance area on a
bounce. If the ES closes under the 1336 area on Tuesday, it
would be the first sign of a top in quite a few weeks.


March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1343.00-1343.50
1345.25-1345.75 strong
1348.50-1349.25 major
1352.50-1354.00 huge


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1339.50-1339.00 pivotal
1337.25-1336.75
1330.50-1330.00
1327.50-1327.00 major
1322.25-1321.50


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2399.50-2400.75
2404.00-2404.50
2410.25-2412.00
2418.00-2419.00


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2384.50-2384.00
2380.25-2379.50
2370.50-2369.75
2366.50-2365.50
2358.50-2357.50

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

02/16/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 16 / 2011

(Published Since 1996)

...............................................


Dateline: 6:01 pm eastern time, 2/16/2011

The ES opened up 4 points on Wednesday, and after turning
down from 1332.50 resistance, the dip reversed at 1330 and
took off higher and reached 1336.00 before stalling out.
Once the 1334.00 level broke, the downside picked up steam
and dropped to the 1328-1327 new support by noon. Shorts
were covered and a bounce from 1327.50 to 1333.00 happened
before the Fed Minutes release at 2pm. After the release,
the ES pulled back to updated support at 1330.50-1330.00 and
turned back up and rallied to 1135.00-1335.50 on ES and the
2400-2401 shorting zone on the NQ. Those areas were
rejected, and then the futures backed off into the close.

It seems like the market doesn't want to even pull back, let
alone go into a corrective selloff. At these levels, the
risk is being long as the rug could be pulled from under the
market at any time. On Thursday, look to sell a pop up to
test the initial resistance areas with a fairly tight stop.
On the downside, the 1330.50-1330.00 zone will need to be
quickly reversed on a test of that zone. If the market can
not turn around there, then things could be changing short
term.

NOTE: I will not be here on Thursday after 1pm. I will do
audio updates from around 1am to 12:30pm, but the next
Nightly update will be sent on Sunday evening.


March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1335.25-1336.00
1338.25-1339.00
1340.50-1341.00

March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1330.50-1330.00
1327.50
1325.25-1324.75
1322.50-1322.25 *key
1320.50-1320.00 *major


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2400.50-2401.50
2405.50-2406.50
2410.25-2412.00

March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2386.50-2385.25
2382.50
2379.00-2378.50
2372.25-2370.50 *key
2366.75-2365.75 *major


---------------------------

REMINDER:

Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:

http://www.tradestalker.com/RBIchat.htm


---------------------------


Good Trading,
Mike Reed

Copyright (c) 2011 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.
************************************************

02/15/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................
TradeStalker's
Support and Resistance Update
2 / 15 / 2011
(Published Since 1996)
...............................................

Dateline: 6:26 pm eastern time, 2/15/2011

The lower open on Tuesday was reversed up from 1324.25 on
the ES, which was 1 tick under Monday's 1324.50 low, and a
bounce to the 1328.00-1328.50 area followed. As stated in
the Monday night update, that was key resistance and where
selling should come in. The 1328.00 level was reversed and
the ES dropped to 1322.25 before bouncing back to 1327.75 by
early afternoon. A double top formed and another pullback to
1322.25 held and a rebound started with 90 minutes left in
stock trading. A bounce back to 1327.00 occurred but that
was it as the market ended the day in a narrow range.

On Wednesday we get Housing Starts and PPI before the open,
and then the Fed Minutes at 2 pm. The back to back narrow
range days sets the market up for at least some better
volatility on Wednesday. If there is early strength, it
should be reversed in the first 40 minutes at the latest. If
that 1328.00-1328.50 is rejected again, it could start
another decent pullback.

On the other side of the coin, early weakness has been
setting up trades from the long side for a scalp at least.
If that is going to happen again, then a dip should hold the
1325.50-1324.75 zone for the stair step higher to continue.
So, look for a potential trade on the long side if that area
is held early. If that area is not defended, then the double
bottom at the 1322.25 area needs to be quickly reversed on a
third test, otherwise the market will be losing its
underlying bid and a change on the bigger picture could be
in the works. After the Fed Minutes are released, a quick
move up and down (or the opposite) could occur before a
trend then develops for a move that lasts into the last 30
minutes or so.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1
1327.00
1328.00-1328.50 *key
1331.75-1333.00 *major
1338.25-1339.00

March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1
1325.50-1324.75
1322.50-1322.25 *key
1320.50-1320.00 *major
1317.50-1317.00
1313.25-1312.50 *mega major

March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1
2382.00
2383.25-2384.00 *key
2387.50-2388.50 *major
2396.75-2398.00

March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1
2379.00-2378.50
2372.25-2370.50 *key
2366.75-2365.75 *major
2359.50-2358.50
2351.00-2349.50 *mega major

---------------------------
REMINDER:
Real Time subscribers can view these updates, and also get
real time instant messages, on the web at this site:
http://www.tradestalker.com/RBIchat.htm

---------------------------

Good Trading,
Mike Reed
Copyright (c) 2011 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.
*************************************************

Trading Options Using Support and Resistance

If f options are your trading vehicle of choice, then you’re in luck, because like almost all markets they will tend to “obey” support and resistance areas - just as the underlying stock or index does. In fact, some nice percentage gains (or losses if you aren’t disciplined enough to get out when wrong) can be made in a short amount of time, if the trade is timed right.

I personally trade options this way in my own trading account. Option strategies can be simple or very complex. Options trading can be as speculative or as conservative as you want. This means you can do everything from protecting a position in a stock or index from a sell-off, to making an outright “bet” on a short term move of a market or index.

A recent example of an options trade using Support and Resistance for guides was a trade made on April 7th and 8th of 2010. When the ES was trading just 1 point below my 1186 resistance (after having reached and reversed from there about 10 minutes prior) on Wednesday April 7th. I bought the SPY April 119 Puts for .99, or $99 per contract. This was a directional play for a short term sell-off. On Thursday morning the ES dropped to 1171.00, which was just above my 1170.50-1170.00 support. The Put option made a high at 1.85. I covered the Put options at 1.75 ($175 per contract) when the ES was near 1173 or so.

That was a very nice percentage gain due to the leverage. This was a case where I got short near a good Resistance area (via buying Put options), and covered near a good Support area. Time to expiration on this option was just 7 ½ days, so the expected move and exit needed to happen soon in this case. Trading options that close to expiration are for day trades or very short term plays. The lines on this Put option chart were equivalent to the support/ resistance for the e-mini SP futures (ES) listed above.



I use support and resistance for entries and exits, as well as for clues about where the market is going. Markets change, rendering most back-tested systems obsolete after awhile. But support and resistance trading never becomes obsolete, because support and resistance levels are caused by human nature. They are a natural occurrence in all liquid markets, they always have been and they always will be.

So, when you see the market or a stock you are trading struggle at a resistance area, and your strategy / system tells you its time to sell, consider a Put option strategy. If the market, or stock, is holding at support and your system says it’s time to buy, then Call option strategies can be employed. The example above is the most basic of option strategies. As stated, they can be very complex also. However, directional trades for the short term using support and resistance zones for entry/ exit can give very good percentage gains when they go right.

Keep your stops in place, and good trading.

Mike Reed
TradeStalker.com

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)

02/14/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 14 / 2011

(Published Since 1996)

...............................................

Dateline: 6:06 pm eastern time, 2/14/2011

The ES opened lower and bounced 3.50 points from the
1325.75-1325.25 support to the 1328.75 resistance, then
dropped 4.25 points to a lower low at 1324.50 around 11 am.
A turn around from that level took the ES up to 1329.50, and
then it went sideways in a 1.50 point range for about 2
hours. At 2:47 pm they broke out above 1329.50 and that
carried the ES to 1330.25 before pulling back almost 2
points. A bounce to test that 1330.25 level was rejected,
and the ES tested the 1328.50-1328.00 updated key support
before running up to 1331.25. After stocks closed the
futures turned down and the ES settled under that 1328.50-
1328.00 zone.

The market was weak early, and then rallied back to new 52
week high ground yet again on Monday. The way the day ended
though looked telling. The SP500 cash would double its 2009
low at 666.79 by reaching 1333.58 and it reached 1332.96
intraday on Monday. The ES nearby contract made a low at
665.75, and that is up 100% at 1331.50. The Monday high on
the ES was 1331.25. After reaching those highs in the last
half hour on Monday, the futures dropped in the last 30
minutes to settle well off of their highs. Hopefully you
weren't trapped buying a potentially important top on
Monday.

So far the Nasdaq 100 is the only average to clear its 2007
high. The Nasdaq Composite was about 60 points shy, and the
Dow and SP500 are a long ways away still. That divergence is
not healthy. Along with the price action on Monday, the Vix
gave a sell signal at Monday's close as the sentiment is
making a subtle shift from overly complacent.

Lately early weakness gets reversed in the first 40 minutes
and then the market rallies back to make a higher high. On
Tuesday, we could see the same action early, however if
there is a test of the Monday highs that stalls/ reverses,
it would set up a gift for a shorting opportunity. At this
juncture, all rallies are suspect as the 1320.50-1320.00
area will be key on a move lower. If that area is tested, it
must be quickly reversed to get a decent bounce underway.
However, if that area does give a bounce, don't expect it to
hold as things could get a bit ugly if the ES fails at/
under the 1328.25-1328.75 area on a bounce attempt.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1328.25-1328.75
1331.75-1333.00
1338.25-1339.00


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1325.25-1324.50
1323.50
1320.50-1320.00
1317.50-1317.00
1313.25-1312.50


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2382.50-2383.25
2387.50-2388.50
2396.75-2398.00


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2377.00-2376.50
2371.50
2366.75-2365.75
2359.50-2358.50
2351.00-2349.50

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

02/13/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 13 / 2011

(Published Since 1996)

...............................................

Dateline: 5:36 pm eastern time, 2/13/2011

The lower open reversed 20 minutes in and it was trend up to
1320.50 level on the ES, then updated support at 1318.50
held and a run to 1327.00 followed. We got short near
1324.50 and rode it to new support/ target at 1320.50 where
the pullback held and then turned back up. The 1325 level
held the market down for a bit, then the ES broke out and
went to the 1328.25-1328.75 resistance by 2:45 pm. A small
dip was bought, but the ES double topped at 1328.75 and
pulled back 3 points before the close.

The market is getting crazy acting. It is starting to act a
lot like 1987 and 1999. Both of those years were the 3rd
year in the Presidential cycle, and the market was
invincible. Another 12 years later in 2011, it's the same
price action (except not at *record* highs this time) but
for different reasons. I'm just sayin...

Anyhow, last week the market rallied early in the week,
dropped into Thursday morning at the 1308 support zone, and
then rallied all the way back to new 52 week highs, reaching
the 1328.75 resistance on the ES on Friday. This move has
momentum, but is getting a bit frothy. In any case, the 1320
area had been good overhead resistance, and now it will take
a break back under the 1320.50-1320.00 zone to have a
reversal. Actually, if the market is going to stay in a good
uptrend, the 1325.75-1325.25 initial support would need to
be held.

On the top side, the ES did make a little double top at the
1328.75 resistance level. A small short position was taken
there, but the way the market is acting, that should be
covered if there is early weakness on Monday. If that
1328.25-1328.75 area is exceeded, then a move to the
1332.50-1333.00 area on the ES would be next.

Lately the market has been weak early, and then is able to
get footing and rally again. Since Friday was basically a
trend up day, look for early strength to be sold, and then
if the first decent pullback gets its footing over the
1320.50-1320.00 area on the ES, it should set up another
rally attempt. However, if the 1320.50-1320.00 area on the
ES is not held, then things could be changing short term and
bounces will likely fail under the 1325.00-1325.50 area or
lower if the market is rolling over.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1328.25-1328.75
1332.50-1333.00
1338.25-1339.00


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1325.75-1325.25
1323.50
1320.50-1320.00
1317.50-1317.00
1313.25-1312.50


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2380.00-2380.50
2386.00-2386.50
2396.75-2398.00


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2375.00-2374.50
2371.50
2366.75-2365.75
2359.50-2358.50
2351.00-2349.50


Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

02/10/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 10 / 2011

(Published Since 1996)

...............................................

Dateline: 6:16 pm eastern time, 2/10/2011

The ES opened almost 8 points lower and bounced from the
1308.50-1308.00 major area and then rallied back to the 1317
area before pulling back. The 1313.50-1312.50 area held on a
pullback, and a move to 1319.50 followed, but the move
didn't stick and the ES pulled back to the 1314.50 updated
support. Another run up failed at 1318.50, but the 1315.25
level on the ES and the 12200 level on the Dow cash were
reversed and a sprint to a 1320.50 high was followed. A wild
ride up promptly reversed, and another drop to 1315.25
occurred then the ES ran back up to 1319.50 before the
close.

The market was able to rally off of the 1308.50-1308.00 area
on the ES on Thursday, which is the good news. The bad news
is that the 1320 area was rejected again. Also, the Nasdaq
futures, which rallied back nicely from its early low at
2340.00, have had all sorts of trouble pushing through the
2363-2365 area. That area has been rejected 8 times over the
past 2 days.

So, things look to be changing short term and bounces should
have trouble getting to, let alone holding, over the 1320
level on the ES and 2365 on the NQ. On the downside, the
initial support will need to be quickly reversed to avoid
trouble on Friday. If the market gets down there early and
reverses, then a good snap back rally could occur. However,
even if that happens, the market will set up a better
shorting opportunity as soon as upside momentum stalls.

If the initial support is broken and held instead of
reversing back up, then a trip back to the 1308 area will
probably be in the cards. That area would need to be quickly
reversed, and leave a double bottom on the charts, to get a
decent rally in gear. If that area is not held, then the
1304.00-1303.50 would be next, and would be key to hold to
avoid seeing the 1298-1297 area again.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1320.00-1320.50 *key
1322.75-1323.50
1328.25-1328.75
1332.50-1333.00


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1315.25-1314.50 *key
1311.25-1310.50
1308.50-1308.00 *major
1304.00-1303.50
1298-1297


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2364.50-2365.00 *key
2368.50-2369.50
2374.75-2376.00
2384.00-2385.00


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2355.00-2354.50 *key
2349.50-2348.50
2340.50-2339.50 *major
2330.25-2328.75

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)

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.
*************************************************

02/08/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 8 / 2011

(Published Since 1996)

...............................................

Dateline: 5:36 pm eastern time, 2/8/2011

The ES opened at the 1317 resistance and dropped to the
1313.50-1312.50 support in the first 40 minutes of trading,
and then ran up from 1313.00 to 1320.50 shortly after noon.
A pullback to updated support at 1317.00 followed, then a
run up to 1320.75 occurred. A dip back to the updated
support at 1318.50 was reversed and the ES bounced to
1321.25. A dip held 1320.00 new support in the last 30
minutes and reached a 1322.25 high (just under the 1322.75-
1323.50 zone) before the close.

This move up has been relentless, and will continue unless
the ES breaks back under 1320 and holds there on a bounce.
We had early weakness get reversed on Tuesday and the move
was basically trend up. Back to back trend days are not
common.

Wednesday should be a more 2-sided affair. If there is early
strength, it should reverse in the first 20-40 minutes and
then see how the ES handles the 1320 area. If that is
defended, the melt up move can continue. If it's not held,
then the 1317 area should be a key, pivotal, area on a
deeper pullback. If that is broken, then odds will be better
for a bounce to fail.

NOTE: A HEADS UP, I will be away on Wednesday from 1pm until
late, so there will not be a Wednesday night update.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1322.75-1323.50
1325.50-1326.00
1328.25-1328.75
1332.50-1333.00

March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1320.00
1318.50-1318.00
1317.00-1316.50
1313.00-1312.50
1308.50-1308.00


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2364.00-2364.50
2368.50-2369.50
2374.75-2376.00
2384.00-2385.00


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2358.00
2356.25-2355.50
2350.75-2350.00
2344.00-2343.00 key
2336.75-2335.50

CLICK HERE FOR FREE TRADING VIDEOS!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

Basic Rules to Day Trading

Written by: Mike Reed/TradeStalker.com

Everyone trades a little differently. The internet abounds with advice on day trading. The trading method outlined below is MY personal approach to trading. This method has worked for me for the last 27 years, and has helped me to avoid big draw downs since the mid 1980's. My style of support and resistance trading has helped me to make a good living trading.

My advice on day trading takes some time to learn 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. My advice below is for anyone wanting to learn day trading, or even those of you who have been day trading support and resistance, but are not seeing consistent profits.

Here are My 10 Basic Rules to Day Trading:

Rule #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.

Rule #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 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 right 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.

Rule #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 the first minute or less. When trades don't act right in the first minute, 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.)

Rule #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 ticks against you. This is not easy at first, but if you stick with it, you'll get it.

Rule #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.

Rule #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.

Rule #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.

Rule #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.

Rule #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.

Rule #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.

If you are looking for experienced, honest, professional, and consistently accurate advice on day trading, TradeStalker's Support and Resistance Updates are for you. I write a market newsletter each day, giving my "game plan" for the next trading day. I'm as specific as possible including Support and Resistance levels that I will be buying and selling against, which provides *you* with great trade set ups nearly everyday.

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com
Copyright 2011 Mike Reed/TradeStalker.com

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)

02/07/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 7 / 2011

(Published Since 1996)

...............................................

Dateline: 5:46 pm eastern time, 2/7/2011

The ES gapped up on the open, and after a small dip to
1312.50 new support about 20 minutes in, it was trend up to
1320.00. The move stalled and when the 1317.25 level broke
and then held 1317.25 on a bounce, a drop to 1313.25
occurred in the last hour. A bounce back to that 1317.25
level occurred before pulling back into the settlement.

The market keeps making higher highs, but the action on
Monday looked a bit toppy. A move up will need to break/
hold over the initial resistance areas, not reject those
areas, to avoid a decent pullback on Tuesday. The Vix
reversal gave 1 sell signal on Monday. Lately the short term
overbought/ oversold indicators have done a good job at
turns.

So, look for early weakness to be bought on Tuesday,
especially if the initial support is held/ reversed early.
If that plays out, the first decent bounce should be a good
shorting opportunity as soon as an early bounce stalls out.
If that's not at the 1317 area then the Monday highs could
get a test before a reversal occurs.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1316.50-1317.25
1319.50-1320.50
1322.75-1323.50


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1313.50-1312.50
1308.50-1308.00
1305.50-1304.50
1298.00-1297.50


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2350.00-2350.50
2359.00-2360.50
2368.50-2369.50


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2341.50-2340.50
2336.75-2335.50
2332.25-2331.50
2325.50-2324.50

CLICK HERE FOR FREE TRADING VIDEOS!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

02/06/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................
TradeStalker's
Support and Resistance Update
2 / 6 / 2011
(Published Since 1996)
...............................................

Dateline: 5:26 pm eastern time, 2/6/2011

The ES popped up and reversed from 1306.00 (the 1305.50-
1306.50 zone) on the open on Friday, and dropped 6 points to
the 1300.50-1299.75 zone. A bounce off of 1300.00 failed at
1306.25, again, and then an 8+ point drop to the 1298.00-
1297.50 key zone followed. From 1298.00, the ES rallied back
to 1305.75 shortly after 1 pm, then a dip to updated key
support at 1304 followed. The market bounced right back and
the ES reached the 1308.00-1308.50 resistance zone at the
close.

The market has been pulling back in the morning, and then is
able to come right back and rally to new highs. The support
and resistance areas have been acting as magnets and/or
turning points all of the way up. On Friday the ES was able
to get over the 1306 prior high, after failing there on four
or five occasions, and moved on up to the next resistance at
the 1308.00-1308.50 zone. There was good movement both ways.
These were the swings of 4 or more ES points on Friday:

Price CHANGE
1306.25
1300.00 -6.25
1306.00 +6.00
1298.00 -8.00
1308.25 +10.25

For this move to keep its steady trend up, then a pullback
should stay over the 1305.50 area and then push on to new
highs again. If that is the case, then we could see the
1312-1313 area before the move is over. Otherwise, if the
initial support areas are not held, then just below are the
Friday afternoon lows at the 1304.00-1303.50 zone. If a
pullback is not able to hold that area, then the upside pace
is broken and a trip down towards the 1298 area could be in
the cards again.

So, on Monday look to sell early strength in the first 20-40
minutes of trading, and then if the first pullback is able
to hold the 1304.00-1303.50 zone then the upside can
continue and at least test the 1308 area again. However, if
that 1304 area is not held, then the bounces should fail as
the market makes a trip back towards the 1298 area. If that
occurs, especially early, then the market should come back
and rally strong and if things are not changing. If the
market gets down there and isn't able to snap a right back,
then the market might be in for a rough day.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1308.00-1308.50
1312.00-1313.00
1318.00-1318.50

March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1305.50
1304.00-1303.50
1298.00-1297.50
1292.25-1291.50

March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2338.75-2339.50
2344.75-2345.50
2352.75-2354.00

March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2334.50
2332.25-2331.50
2325.50-2324.50
2317.50-2316.50

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
************************************************

02/03/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 3 / 2011

(Published Since 1996)

...............................................

Dateline: 6:28 pm eastern time, 2/3/2011

The ES opened at the 1298.00-1297.50 support and bounced to
1301.50 resistance, then dropped to 1298.00 again. A pop to
1301.25 was rejected and unable to hold 1300, the market was
sold hard until reaching the 1292.25-1291.50 support zone.
The ES rallied back to 1300.50 and stalled out, however the
pullback held the 1298.50-1298.00 updated support and there
was a break out to the upside. The move reached 1305.75
(1305.50-1306.50 key resistance) and then pulled back to
updated support at 1303.50 by the close.

The internal gauges are at/ near turning points, and at
these levels the Friday action should be telling for the
short to intermediate term health of the market. On one side
of the coin, the intermediate term internal gauges are
trying to turn up. At the same time, short term gauges are
nearing overbought areas, and the sentiment has gone from
overly bearish to overly bullish. The ES has finally
overcome the 1300 level, and now needs to hold this area.

The early Friday action will be about the Employment report.
The trends are up, but the market hasn't been able to get
through the 1306 area twice now. If that area is cleared,
and not rejected, then a mini melt up towards the 1312.00-
1313.00 area is not impossible. If that was to happen, it
would set up the easiest shorting opportunity in a long
time. In fact, there will likely be selling into any further
strength up here as the reward/ risk is not great on new
longs up here.

So, if that 1306 area on the ES is rejected again, then
a pullback would need to hold over the 1300.50-1299.75 zone
on the ES, or 1298 at the worst. As long as the market keeps
its "buy the first good pullback" mode and holds that area,
then the market remains unharmed. However, if that area is
not defended, then something is changing and a deeper drop
could occur. The low on Thursday was at the 1292.25-1291.50
zone, and that is major now on the short term.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1305.50-1306.50 *key
1308.00-1308.50
1312.00-1313.00 *major


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1303.00
1300.50-1299.75
1298.00-1297.50 *strong
1292.25-1291.50 *major
1288.50-1287.50


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2325.50-2327.75 *key
2332.25-2333.00
2338.75-2340.00 *major


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2320.50
2317.50-2317.00
2312.50-2311.50 *strong
2296.50-2295.50 *major
2291.00-2290.25

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com


Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
*************************************************

02/02/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 2 / 2011

(Published Since 1996)

...............................................

Dateline: 5:56 pm eastern time, 2/2/2011

After trading at the 1298.00-1297.50 support just before
stocks opened, the ES bounced from 1299.25 on the open and
rallied 5 points to 1304.25 after an hour of trading. We
covered shorts/ puts from 1305 area on the open, and pretty
much stood aside the rest of the day. It turned out that the
whole day was inside of the first hours trading range, with
a late drop testing the low.

We had an inside day on Tuesday, as the market digested the
Monday gains. The bounces couldn't stick, but still the
market refused to fall apart. Most indicators are back to
neutral now.

On Wednesday early weakness should set up a trade on the
long side as long as the initial support is held. However,
if that plays out, beware that when the upside stalls out it
should set up a better shorting opportunity. The market
hasn't liked the thin air over 1304 on the ES and the 2326
on the NQ for very long. The way the market acted late in
the day on Tuesday showed how eager longs were to cover. If
the ES stays under 1300, instead of reversing back up
through it, then there could end up being a sizable drop in
the works.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1301.50
1305.50-1306.50 *key
1308.00-1308.50
1312.00-1313.00 *major


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1302.00-1301.50
1298.00-1297.50
1292.25-1291.50
1288.50-1287.50
1284.50-1283.75 *major


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2320.00
2327.50-2328.25 key
2332.25-2333.00
2338.75-2340.00 *major


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2215.25-2314.50
2304.50-2303.25
2296.50-2295.25
2291.00-2290.25
2286.50-2285.75 *major

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), 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.
************************************************

02/01/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

2 / 1 / 2011

(Published Since 1996)

...............................................

Dateline: 5:56 pm eastern time, 2/1/2011

The ES gapped up 8+ points and kept going in trend up mode
to the updated 1305.50-1306.50 zone. A pullback held at
1302.00, and a bounce to a high at 1306.00 occurred with 8
minutes left in stock trading. That was rejected and a
pullback towards 1302 occurred after stocks closed. We
bought a small position in put options when the ES was at
1305 and will hold those overnight.

The Vix gave a number of buy signals that I didn't trust
coming into Tuesday trading, and the signals proved to be
correct. Now, for the first time in months, my RBI
Oscillator poked into sell mode and I'll not ignore that.
Tuesday was a trend up day, and back to back trend moves are
rare so Wednesday should be a two-sided affair at best. The
rallies should have trouble holding, but a decent sized
pullback should find buyers below, especially if the 1298-
1297 area on the ES is tested and held.

So, on Wednesday look to sell early strength if there is
some to set up a good odds shorting opportunity. If that
plays out, then a pullback towards the 1298 area should hold
if the market is going to have 2 sided action. If that area
is not defended, then a move back to the lower 1290's is
likely before a bounce can occur. If the market opens lower
and turns up from support, then a test of the 1306 area
could still occur but will be sold unless the market does
the unusual.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1305.50-1306.50 *key
1308.00-1308.50
1312.00-1313.00 *major


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1302.00-1301.50
1298.00-1297.50
1292.25-1291.50
1288.50-1287.50
1284.50-1283.75 *major

March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2327.50-2328.25 *key
2332.25-2333.00
2338.75-2340.00 *major

March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2319.00-2318.00
2212.00-2310.50
2296.50-2295.25
2291.00-2290.25
2286.50-2285.75 *major

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Mike Reed
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This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)

01/31/11 TradeStalker's E-Mini Futures Support and Resistance Updates

.................................................

TradeStalker's

Support and Resistance Update

1 / 31 / 2011

(Published Since 1996)

...............................................

Dateline: 5:56 pm eastern time, 1/31/2011

The ES opened up 5+ points and in the 1277.50-1278.50 zone
and dropped 3.50 points to the 1274.50 updated support and
bounced back. That bounce failed at 1277.50 and a low at
1273.25 was made. After the 1278 area was broken, it turned
support and the ES rallied to 1283.75 before pulling back. A
bounce then failed at 1283.00, setting up a shorting
opportunity, and the ES pulled back to 1277.50 before
reversing back up. The last hour was back to the upside as
the ES reached its 1283.75 high just before the close.

Normally the last day of the month and the first trading day
of the month has an upside bias. The Vix reversed a bit, and
gave a short term buy signal but I'm not sure I trust that
just yet. The ES found support around the 1278 area, but
bounces were not easily held on Monday. The ES made an
inside day, and acted range-bound on Monday.

On Tuesday, early strength should be sold and then if the
1278 area is defended on a pullback then the damage can be
undone. If that area is not held, then a move to test last
Friday's lows could be in the cards. With the ISM Index
release 30 minutes into the day, a trading high/ low should
be made in that timeframe and last into the lunchtime
trading if the market action is going to be a volatile two
sided day.

March 2011 SP futures resistance
symbols: emini = esh1 / big contract =sph1

1283.75-1284.50
1287.50-1288.50 key
1291.50-1292.25


March 2011 SP futures support
symbols: emini = esh1 / big contract =sph1

1280.50-1279.75
1278.00-1277.50 pivotal
1273.25-1272.50
1267.50-1266.50 major


March 2011 Nasdaq futures resistance
symbols: emini = nqh1 / big contract = ndh1

2285.75-2286.50
2290.25-2291.00
2295.25-2296.50


March 2011 Nasdaq futures support
symbols: emini = nqh1 / big contract = ndh1

2276.50-2275.50
2268.75-2267.50
2256.00-2254.50
2248.50-2246.75

Click Here to Sign Up for a FREE Delayed Trial AND a BONUS,
My "Basic Guide to Support and Resistance Trading!

Good Trading,
Mike Reed
TradeStalker.com

Copyright (c) 2011 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.

This publication's primary focus is trading the index
futures ($ES_F)and($NQ_F). However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), (VIXY), and (DOG)

www.TradeStalker.com

PO Box 9783, Ft Wayne, IN, 46899

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research and data believed reliable, but there is no
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