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Author: Ilan

The Importance of Underlying Assets in Futures Trading | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

I have been talking about the gaps and looking at the pit session SP500 which is the big SP ( each point = $250 versus $50 each point on the mini SP)

Another importance of the big SP or the PIT session, is that it tracks the hours of the cash SP500 index which is the UNDERLYING ASSET the SP and mini SP futures trade on.

Yesterday I wrote the following:

If market has more volume on the buy side, the next target is 1185, on the other hand if volume dries out up in these levels, I will be watching price action around 1149 and 1129 before deciding which way offers better risk/ reward.

Looks like overnight moves overseas brought in more volume on the buy side and we closed one gap and even went higher…..but now we have a gap from today’s session at 1159…..

Hourly chart of SP 500 ( pit session ) for your review below: Continue reading “The Importance of Underlying Assets in Futures Trading | Support and Resistance Levels”

Keeping an Eye on Market Volatility in the Pit S&P | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

We closed the first gap on the pit session/ BIG SP as you can see below.

If market has more volume on the buy side, the next target is 1185, on the other hand if volume dries out up in these levels, I will be watching price action around 1149 and 1129 before deciding which way offers better risk/ reward.

At this point, I am neutral and will wait for market to give me some clues before deciding which way to attack.

Daily SP 500 chart for your review below: Continue reading “Keeping an Eye on Market Volatility in the Pit S&P | Support and Resistance Levels”

High Volatility This Week and 8 Steps to Successful Futures Trading | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Download “8 Steps to Successful Futures Trading”
5. Economic Reports
6. Earnings Releases

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1. Market Commentary

Wow, what a day in the metals segment and what a week in general. Fits perfectly what I wrote the last few days:

ALWAYS EXPECT THE UNEXPECTED! When volatility skyrockets like now, moves become extreme, the speed of the market really picks up and this is when one must adjust their trading size lower to accommodate for the wilder and wider moves.

My 15 min mini SP chart below for your review ,clients who attend my daily live charts program had access to this chart in real-time, along with the signals generated. Continue reading “High Volatility This Week and 8 Steps to Successful Futures Trading | Support and Resistance Levels”

New Margin Requirements US Dollar Index, Continuous Commodity Index, RJ CRB Index

Posted on by Ilan

Please be aware of the following margin requirement changes effective with the opening of business on Tuesday, September 27, 2011 and thereafter. The affected contracts are the US Dollar Index (DX), the Continuous Commodity Index (CI), and the RJ/ CRB Index (CR)

Outright Margin Requirement Changes

Contract New Margin Change
US Dollar Index (DX) 1,500 USD +50 USD
Continuous Commodity Index (CI) 16,000 USD +8,000 USD
RJ/CRB Index (CR) 700 USD +200 USD

New Inter-commodity Spread Credits September 2011

Posted on by Ilan

Effective with the opening of business on Tuesday, September 27, 2011 and thereafter are the following New Inter-commodity Spread Credits.

New Inter-commodity Spread Credits

Commodities Position Spread Credit
AUD/CAD(AS) : AUD/USD(KAU) : USD/CAD(SV) long-short-short (1:1:1) 75%
AUD/USD(KAU) : NZD/USD(ZX) : UAD/NZD(AR) long-short-short (4:1:1) 70%
AUD/USD(KAU) : NZD/USD(KZX) : AUD/NZD(AR) long-short-short (4:2:1) 70%
EUR/USD(KEO) : EUR/CAD(KEP) : USD/CAD(SV) short-long-short (1:2:1) 70%
EUR/USD(KEO) : EUR/GBP(KGB) : GBP/USD(MP) long-short-short (2:1:2) 75%
EUR/JPY(KEJ) : EUR/CHF(KRZ) : CHF/JPY(KZY) long-short-short (4:2:1) 90%
EUR/CHF(KRZ) : GBP/CHF(SS) : EUR/GBP(KGB) long-short-short (2:1:1) 80%
EUR/CHF(KRZ) : USD/CHF(MF) : EUR/USD(KEO) long-short-short (2:1:1) 65%
NZD/USD(KZX) : NZD/USD (ZX) long-short (2:1) 100%
EUR/USD(KEO) : US DOLLAR INDEX(DX) long-long(2:3) 75%

Inter-commodity Spread Credit Changes

Commodities Position New Spread Credit Change
EUR/USD(KEO) : EUR/CAD(KEP) : CAD/USD(KSV) long-short-short (2:1:1) 65% -5%
AUD/CAD(AS) : AUD/USD(KAU) : CAD/USD(KSV) long-short-long (1:3:1) 70% +5%
Russell 1000 Index Mini (RF) : Russell 1000 Index Growth Mini (RG) long-short (1:1) 90% +5%
Russell 1000 Index Growth Mini (RG) : Russell 1000 Index Value Mini (RV) long-short (1:1) 90% +5%
Russell 2000 Index Mini (TF) : Russell 1000 Index Mini (RF) long-short (1:1) 85% +10%
Russell 2000 Index mini (TF) : Russell 1000 Index Growth Mini (RG) long-short (1:1) 80% +10%
Russell 2000 Index Mini (TF) : Russell 1000 Index Value Mini (RV) long-short (1:1) 85% +15%

High Market Volatility as Shown by S&P 500 Pit Session | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

Days like today and yesterday encourage me to repeat what I wrote yesterday:

ALWAYS EXPECT THE UNEXPECTED! When volatility skyrockets like now, moves become extreme, the speed of the market really picks up and this is when one must adjust their trading size lower to accommodate for the wilder and wider moves.

Below is an hourly chart of SP500 pit session. Notice the gaps we have from overnight moves.

I think if we can break 1132, market may have a shot at closing the gap all the way up at: 1155 Continue reading “High Market Volatility as Shown by S&P 500 Pit Session | Support and Resistance Levels”

FOMC Day Aftermath: Volatility in the Markets | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

Note to our clients who are trading with TransactAT:

The latest version is now TransactAT 5.2.2 (download). The newer version can be installed over the older version. Please contact you broker if you need any help.

FOMC came like a hurricane as the market sold off sharply after the announcement with some heavy volume.

Last couple of days I shared my mini Russell 2000 chart along with the potential sell at 693 and target at 673. This trade idea is completed.

Below you will see my mini SP chart with potential levels both below and above as my guess is we will see volatility going both directions.

ALWAYS EXPECT THE UNEXPECTED! When volatility skyrockets like now, moves become extreme, the speed of the market really picks up and this is when one must adjust their trading size lower to accommodate for the wilder and wider moves. Continue reading “FOMC Day Aftermath: Volatility in the Markets | Support and Resistance Levels”

Trade With Caution, FOMC Day Tomorrow | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

 

Front month for Equities (eminis), currencies, bonds and financials and many other markets is now December. You should not be trading almost any September contract of any market.

Note to our clients who are trading with TransactAT:

The latest version is now TransactAT 5.2.2 (download). The newer version can be installed over the older version. Please contact you broker if you need any help.

FOMC tomorrow and before that more than a few economic numbers.

FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow.

If you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the market- FAST.

My observations suggest choppy, low volume up until announcement, followed by some some sharp volatile moves right during and after the announcement. However, with tomorrow early morning reports, we may see more volatility during first couple of hours as well.

My SWING trading model is currently short the mini Russell from 693 ( target around 672, stop around 716) which may not suite everyone’s stomach ahead of the what maybe volatile overnight and tomorrows FOMC session, but chart for your review below.

If you would like to be included on my SWING trade ideas, send me an email. Continue reading “Trade With Caution, FOMC Day Tomorrow | Support and Resistance Levels”

New Version of TransactAT is Available | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases

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1. Market Commentary

 

Front month for Equities (eminis), currencies, bonds and financials and many other markets is now December. You should not be trading almost any September contract of any market.

Note to our clients who are trading with TransactAT:

The latest version is now TransactAT 5.2.2 (download). The newer version can be installed over the older version. Please contact you broker if you need any help.

 

We started the week right where we left the last one….overnight gaps due to news from Europe ( Greece this time), moves both ways with volatility actually dying out during the day session.

I have a “small sell signal” if we can break below 1186 on Dec. Mini Sp with targets coming at 1166 and 1148. Continue reading “New Version of TransactAT is Available | Support and Resistance Levels”

Front Month for Futures Contracts is now December | Support and Resistance Levels

Posted on by Ilan

In this post:

1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Today’s Highlighted Earnings Releases

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1. Market Commentary

Front month for Equities (eminis), currencies, bonds and financials and many other markets is now December. You should not be trading almost any September contract of any market.

Have a great weekend and if you like to have access to chart templates like the one below, along with my DIAMOND ALGO ( e-mini SP from today’s session), keep reading: Continue reading “Front Month for Futures Contracts is now December | Support and Resistance Levels”

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.