Introduced in the year 1982, Index futures or stock index futures are extremely popular among trading commodities today. While trading, an index future is settled in cash on the value of a certain stock market index. One of the most traded indices is the S&P500.
These are quoted on the basis of either an underlying or a spot price for an index value. There are a number of technicalities involved, most of which you should understand. However, even if you find it tough to comprehend what Index futures are, you can take assistance from the trade experts at Cannon Trading.
We at Cannon Trading want you to understand the basics and the details about Index Futures like our experts do. There are a number of blogs that we list here in our category archive. We recommend that you read these to know for yourself what Index Futures trading is all about.
A quick look at mini Russell 2000 daily chart, as I view the mini Russell as being the leader in price action amongst different indices over past few months.
Daily chart below shows how we’ve been making lower highs and lower lows.
If the pattern continues, I see us visiting the 553-556 area over next few days. On the flip side we need to see a break above 650 in order to provide the bulls with more courage.
Continue reading “Futures Trading Levels & Economic Reports for July 20th 2010”
Interesting action today! Not sure what to make of it, there is a case for the bulls and a case for the bears. I am thinking that as a swing trader, one can try to short the market with a stop slightly above the recent highs ( recent high was around 1100 ). Taking the approach that while chances of getting stopped out are higher than normal, the relative risk is smaller than the relative potential reward. On the other hand, bulls may get more confidence going long if market breaks above 1103 or so..
Daily chart for review below.
Continue reading “Futures Trading Levels & Economic Reports for July 16th 2010”
The futures markets in general had some “futures trading to make up” after the long weekend and we some strong moves and bit more volatility in variety of commodity and futures markets.
I mentioned on Friday blog:
“Stock indices are getting a bit oversold and I suspect that sometime next week we should see a good, short covering rally. However, i don’t try to predict when it will happen but rather use price action with support/resistance lines to get a confirmation. Daily chart of the e mini Russell 2000 for your review below. A break above 613 would give me more confidence in taking a trade from the long side, until then the trend is still pointing lower.”
Well.. today we did see a nice rally that peaked at 612.20 on Sept. mini Russell and headed south afterwards.
In today’s chart I decided to share the popular and followed Dow Jones index. Same analysis from Friday still holds. While indices may be oversold, I would like to see more follow through on the buy side instead of price failure like we saw in today’s session. 9913 is my level to watch on the Dow Jones cash index.
Wishing you a great 4th of July weekend! ( Our office is closed Monday )
Stock indices are getting a bit oversold and I suspect that sometime next week we should see a good, short covering rally. However, i don’t try to predict when it will happen but rather use price action with support/resistance lines to get a confirmation.
Daily chart of the e mini Russell 2000 for your review below. A break above 613 would give me more confidence in taking a trade from the long side, until then the trend is still pointing lower.
As June ends and July is about to start, I thought it would be appropriate to share the monthly chart of the Mini S&P 500 :
Continue reading “Futures Trading Levels & Economic Reports for July 1st 2010”
Little longer term view provided below through the weekly chart of the Mini S&P 500.
