Tuesday, March 29, 2011

50-Day Moving Average Bounce

The test of the 50-day moving average was successful for the bulls. Buyers kept the market above this average.


Trade The Futures Markets When The Cash Markets Are Most Active

Futures trading is the trading of futures contracts, which allows specific stocks, commodities or such assets to be traded at a pre-determined price “in the future”. NOTE the Quotation marks of “in the future”. Essentially Futures trading is just an auction process where Supply and Demand play an important key role in determining the price of the Contract, just like supply and demand determine the price of houses or oranges in the market.

The E-mini S&P 500 is no exception. It is the main market of the US, the real measure of the world economy, and since I live in EU I can assure that all traders look at it. This is the market where the best traders are playing, so examining it is crucial, knowing your competition Is equally important.

But, how do we assess our competition?

Simply through the Supply and Demand levels that this Market shows on a chart. They can be pretty clear in the Regular Trading Hours which occur from 9 30 am NY time to 4:15 pm NY time. To spot these important levels of supply and demand, one MUST begin an analysis from what the “Long Term Participants” are doing down to the “Short Term Participants” action.

Have you ever looked at the differences it makes a 24 hr chart of the ES vs a RTH chart of the ES?

The chart setting can determine the differences between winning and losing, therefore, I prefer to be where the volume and levels are at its peak, on the Regular Trading Hours. If you have no experience with currencies, you will be amazed at opening a chart of the EUR/DOLLAR and setting it up from 2 am NY time to 5:30 pm NY time, a whole new world of order arrives at your screen.

So be sure to trade the higher volume levels of supply and demand in the “regular trading hours”, or better said, be sure to trade when the majority of other traders are active in the market.

For more information on the Specific plan and strategy to trade futures, go to http://www.futures-trading-how-to.com/

Saturday, March 26, 2011

The cash S&P 500 was able to close above its 50-day moving average, while the futures has closed above its 10-day moving average for 5 days straight. The market is back in bullish mode.

The intraday market broke to the bullish side at 1030 ET, but started to lose some bullish momentum around 1230 ET. However, it was still able to close above the previous day's close and Friday's open.

Thursday, March 17, 2011

Four Day Down Trend

As the market evaluates the economic impact of the earthquake and tsunami, we have a four-day, systematic downtrend. Each day has experienced a 62% technical correction, followed by another down swing line.
The cash market closed below its 100-day moving average on the daily chart, which is bearish. Large long positions will not enter the market until it shows signs of consistently closing above its 50-day moving average.

Wednesday, March 9, 2011

Wedge Formation On Daily Chart 03/09/11

While the cash S&P 500 market ($INX) is riding its 50-day moving average, the futures market is forming a wedge on its daily chart. Watch for a breakout of this formation.

Monday, March 7, 2011