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Tag: futures trading

Key Resistance Level in Futures Trading Price Action | Support and Resistance Levels

Posted on by Ilan

Market rallied close to 3% on the SP and Dow Jones. Again it did so on much lighter volume than when it sold off last few weeks but nonetheless one CANNOT argue with price action. We are approaching the 50% retracement level from the highs made on July 8th to lows made Aug 9th. That level on the mini SP is 1212.50. I believe that the 1212 to 1219 zone is an important resistance level to watch. If we break above it with meaningful volume, it may be a sign of further room to the upside, on the other hand if we fail against it and volume picks up with price action going lower, it may be a sign of resumed selling. As always in our business… time will tell. Plenty of economic reports this week, both in the US and in Europe. Last but not least it is the end of the month…. Wishing you great trading this week and Daily chart of the mini SP 500 for your review below.

Daily Futures chart for Mini S&P 500 from August 29th, 2011

Daily Futures chart for Mini S&P 500 from August 29th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Key Resistance Level in Futures Trading Price Action | Support and Resistance Levels”

Futures Trading Levels, Stock Indeces Bounce Back

Posted on by Ilan

Strong bounce on stock indices today across the board. As one can see, market is volatile and one day it seems the market just can’t stop selling, the next it flips around and runs higher….part of volatility, part of uncertainty, fear and greed.

the only advice I can share at this point is be ready for the unexpected. Know yourself, what your goals are out of each trade, how much risk tolerance you have the stomach for and then and only then decide on a trading strategy.

Levels to be aware of as volatility will resume in the mini S&P 500 below:

Daily Futures chart of the S&P 500 from August 23rd, 2011

Daily Futures chart of the S&P 500 from August 23rd, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, Stock Indeces Bounce Back”

Futures Trading Levels, Trading Plans

Posted on by Ilan

On Friday I wrote the following regarding today’s session:

I have no idea of what to expect of this market for next week. Probably more volatility?

I guess I will wait and see price action Sunday night and Monday morning before forming an opinion.

Well after today’s price action I favor the downside as I see the close today to be bearish to neutral.

As I wrote before, you can have the right market direction and feel for the market and still lose… Maybe more important is the trading plan, i.e entry level, potential targets and stops etc. or to make it short….PLAN YOUR TRADE, TRADE YOUR PLAN.

Daily chart of the DOW JONES CASH index for your review below:

Daily Futures chart of the Dow Jones Cash Index from August 22nd, 2011

Daily Futures chart of the Dow Jones Cash Index from August 22nd, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, Trading Plans”

Futures Trading Levels, Uncertain Near Future Expectations

Posted on by Ilan

Another interesting option expiration day. Many changes in market direction, volatility in both sides of the market.

I have no idea of what to expect of this market for next week. Probably more volatility?

I guess I will wait and see price action Sunday night and Monday morning before forming an opinion.

Wishing you a great weekend and recharge for next week trading.

Mini Russell 2000 daily chart for your review below:

Daily Futures chart of the Mini Russell 2000 from August 19th, 2011

Daily Futures chart of the Mini Russell 2000 from August 19th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, Uncertain Near Future Expectations”

Futures Trading Levels, It Is a Bear Market

Posted on by Ilan

Per my comments yesterday, we did see the market take the next leg after consolidating for a few days and it was a down leg….and again volume was significantly higher than we had during the bounce.

The trend is obviously down, but bear markets can also have powerful rallies, intraday and on daily chart basis. Separate the daily chart from your minute to minute trading action. Know what time frame you are trading and know your trading goals. If you are a swing trader then look at the daily chart AND hourly chart but don’t let the shorter time frame picture distort your longer term view. On the flip side, if you are a day trader who is using primarily 1 min chart or tick charts etc., understand what the daily and hourly picture looks like but make your trading decisions based on the time frame you are working with.

Daily chart for your review with some FIB extensions on the way down. 1206.75 is now the first MAJOR resistance, 1103 is the first defense before we visit the 1077 lows made August 9th

Daily Futures chart of the Mini S&P 500 from August 18th, 2011

Daily Futures chart of the Mini S&P 500 from August 18th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, It Is a Bear Market”

Futures Trading Levels, Next Leg: Up or Down?

Posted on by Ilan

Stock indices are consolidating for the last 3 sessions, trading between 1176 and 1207 on the mini SP 500.

The fact that the consolidation is taking place after a big move down and on lesser volume suggests to me that we are about to see another big move. My guess is that if we break below 1180 on the way down, the next big leg is lower and if we break above 1212 then the next big leg will be towards the 1280 region. Only time will tell if my speculation is correct. In the mean time, know the time frame you are trading, the risk you are willing to take, calculate probabilities and risk / reward and then once you have planned your trade, trade your plan. And yes, I know, it is much easier said than done…..

Daily Mini SP500 chart for your review below with the levels I mentioned above

Daily Futures chart of the Mini S&P 500 from August 17th, 2011

Daily Futures chart of the Mini S&P 500 from August 17th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, Next Leg: Up or Down?”

Futures Trading Levels, Resistance at the Fibonacci Level

Posted on by Ilan

Many of our International clients trade European indices, mostly the DAX and Euro Stoxx 50.

Daily chart of the EuroStoxx 50 for your review below, note that the recent rally has stopped right against the 38.2% FIB level. Short term resistance is 2348.5 , near term support is 2242.0

Daily Futures chart of the EuroStoxx 50 from August 16th, 2011

Daily Futures chart of the EuroStoxx 50 from August 16th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Continue reading “Futures Trading Levels, Resistance at the Fibonacci Level”

Futures Trading Levels, The Million Dollar Question

Posted on by Ilan

Market has bounced over the last few sessions but on much lower volume compare to the sell off.

My opinion is that this is just a bounce but then again, bear market rallies can be vicious….

The Million $$$ question is not just where the market is going but more important when and where to get in and how to manage the trade once you are in.
This applies if you are a day trader a long term trader and anything in between….

Daily chart of the Mini Sp 500 along with important levels for your review below:

Daily Futures chart of the Mini S&P 500 from August 15th, 2011

Daily Futures chart of the Mini S&P 500 from August 15th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Continue reading “Futures Trading Levels, The Million Dollar Question”

Futures Trading Levels, Cautions Trading Principles for High Volatility Markets

Posted on by Ilan

Big volume and HUGE volatility over the past two weeks. DEFINITELY changed the day trading environment.

The winning philosophy in market environment like this, is to be VERY picky with entry points that will provide for good risk / reward entry. That means that sometimes you will need to be able to risk NOT getting in a trade / “miss the trade” rather than chase the trade and let the high voltality “shake you out of the market”. Another method to cope with increased volatility is to simply reduce your trading size. Wishing everyone a good, relaxing weekend and recharge for another wild week to come!

Hourly Futures chart of the mini S&P 500 from August 12th, 2011

Hourly Futures chart of the mini S&P 500 from August 12th, 2011

Would you like to have access to my DIAMOND ALGO as shown above and be able to apply for any market and any time frame? The screen shot above is of the Mini S&P 500.

If so, please send me an email with the following information:

  1. Are you currently trading futures?
  2. Charting software you use?
  3. If you use sierra or ATcharts, please let me know the user name so I can enable you.
  4. Markets you currently trading?

Continue reading “Futures Trading Levels, Cautions Trading Principles for High Volatility Markets”

Futures Trading Levels, High Volatility Futures Markets See Gain Today

Posted on by Ilan

Big up day after what I feel was short term oversold conditions. Daily chart of the BIG SP 500 ( pit session ) for your review below. I think that the 1194 to 1200 psychological level will be the first test to see if this bounce is just a bounce or if it has legs to become a more meaningful recovery. Time will tell…..Either way I think tomorrow, being Friday, before the weekend after a volatile week, will be another high volatility day.

Daily Futures chart of the Big S&P 500 from August 11th, 2011

Daily Futures chart of the Big S&P 500 from August 11th, 2011

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Continue reading “Futures Trading Levels, High Volatility Futures Markets See Gain Today”

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.