The Chinese market sold off heavily on continued fears that the Chinese Central Banks will tighten monetary policy by raising interest rates. Worldwide markets followed suit as the Hang Seng and Nikkei both closed lower. European markets are currently trading lower as the FTSE, DAX and CAC are all seeing morning declines.
US Futures followed suit, trading down in the overnight session. The ES found support at 1186.50 around 7:00am EST. This happens to be the price the ES was trading at right before the Fed announced the $600 Billion QE2 last Wednesday. I believe the 1186-1187 level will hold as support. If not, there is very solid support below at 1180. 1180 acted as solid resistance throughout much of the month of October. In any case, I continue to be bullish in the short term. I expect a close at least above 1194 on the ES today, perhaps right around 1200. A close lower than 1194 will be negative for US markets.
Levels to watch this morning (ES):
resistance above at 1193, 1196-1197, 1202-1203, 1205
support below at 1186-1187, 1179-1180
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Long 1187 ES
ReplyDeleteDollar still being bought up, markets ticking further lower. I am still holding my 1187 long. Market has ticked lower than I expected, but I know that at worst, I will be able to exit this trade at break-even on an up-tick... Still its no fun taking this kind of heat...
ReplyDeleteHave to consider exit strategy on this long, can't allow something like getting caught long in another flash crash. The negativity this morning is pretty significant... be careful obviously... I'm still holding...
ReplyDeleteCovered at 1179. Will look for best opportunity to buy back in
ReplyDeleteBetter Yet, I will be looking for best levels to short scalp. I will try and make back my losses on short scalps as the market ticks back up... This is very negative..
ReplyDeleteAs you can see, short-scalping the up-ticks has been working out nicely.
ReplyDeleteI look for another move down b4 the end of the day. I do think the lows are in, but you can never be too careful. I would buy a new low, as I think it would be a fake-out. I anticipate short covering to come in at the end of the day, so a mini-rally to close out trading wouldn't surprise me. That's how I will be approaching my trade entries. Continue to short the up-ticks until we see a move down to threaten the lows. At that point, I will expect a short-cover rally to end the day
We got the 2 tick new low on th ES, now will the market continue back up? I did buy the new low, but sold it for a small profit... perhaps I should have held...???
ReplyDeleteLooking to buy the down-tick now, still only scalping...
ReplyDeleteNo buyers coming in yet... We made a new low, then rallied off it, but still, no continuation. Longs look good, but don't defend below 1172.
ReplyDelete