S&P 500 Posts All Time Historic High

(QQQ)(DIA)(SPY)(GLD)(FB)

by DeWayne Reeves

S&P 500 Posts All Time Historic High Against Backdrop of Global Economic Woes

Cash flows in from all points... It's the beginning of a new quarter, we have a loose cannon threatening the world with his thermo-nuclear pop gun and Europe is broke. Historically April is a strong month for stocks and both US and Global investors desperate for a return, are putting their money to work and fund managers couldn't be happier.

We watch the hubris with a cautious eye, a steady hand.. and a hard stop. This house of cards could come tumbling down faster than a DDOS attack on the Bitcoin mint. Exactly. We called it, it happened, but honestly officer.. we had nothing to do with it.

While the world turns, we continue to take advantage of volatility trading the S&P 500 Emini Futures, Commodities and Currency Futures. Unlike my soapbox oratories, our trades tend to be short and to the point. Our goal is simple - "To make money daily".

Let's have a look at the opportunities the market has presented so far this week:

DeWayne Reeves ‏@CFRN7 Apr

Consider short below 1543 or long above 1551, whichever presents. Want opinion on a specific market? Tweet me. $ES_F #emini #cfrn_trade #es

This trade did not trigger Sunday night. Monday we did break through 1551 on the upside, but the market only made 1 Point available on the follow through.

DeWayne Reeves ‏@CFRN8 Apr

ESM3 - Consider being long above 1553 or short below 1542. $ES_F #es #cfrn_trade #emini

The market was considerably kinder on this trade as you can see on the chart below - 

S&P 500 Emini - Tweet Zone To Zone Move

The Weekly Trading Zone 1545/1546 provided support for the market on Monday and was the foundation not only for our Tweet but for a Zone to Zone move worth 12 points. The Weekly Trading Zones are distributed to Partners before the market opens every Monday. Once published, they do not change for the entire week. If you go back over historical charts, ours or your own, you will notice a pattern. Price moves from zone to zone, over and over, day after day, week after week. There are very few absolutes in trading, but this is a truth you can hang your hat on.

In addition to the Zone to Zone move, our Tweet at 1553 put in a swing high at 1562.75. While the market did make 9.75 points available, we suggested to those following the trade to consider taking at least some profits at the WTZ. If you unloaded your entire position at the Zone, the market still made 5 points available. If your daily goal is 2 points a day, that trade alone was good for half your weekly goal.

Our next trade on Tuesday was again a two sided coin. As you can see from the chart, price dipped 2 ticks below 1556 before reversing. Based on your method of entry, those 2 ticks could have resulted in a trade that was stopped out. There were considerable opportunities to exit at break even, but the real trade turned out to be on up-side. This should come as no surprise, we have been in a slight uptrend since we gapped into the New Year.

DeWayne Reeves ‏@CFRN8 Apr

ESM3 - If flat from previous Tweet, consider being long above 1564 or short below 1556, whichever presents first. $ES_F #cfrn_trade #emini

S&P Emini Tweet - 1564

Again we see a Zone to Zone move from 1559 to 1569. A clean 10 point move with all Green on the hourly chart. The Tweet triggered at 1564 and screeched to a halt at exactly 1569 - the WTZ. From the trigger to the Zone, the market made 5 points available in addition to the 10 point Zone move.

DeWayne Reeves ‏@CFRN9 Apr

ESM3 - Price is now testing 1564 from the last Tweet. How to trade it? Consider being long above 1565. $ES_F #cfrn_trade #es #emini

As you know, we feel very strongly about the market testing important prices and areas. That's what prompted the Tweet above and the one below.

DeWayne Reeves ‏@CFRN9 Apr

ESM3 - Keep in mind the long above 1565 idea, now that we've re-tested 1554, is still valid if triggered. $ES_F #es #cfrn_trade

The result? We were given 2 bites of the apple at 1565. Notice how price was was rejected at the Zone just as it was on the previous trade? From the trigger to the Zone, the market made 4 points available (twice). If you remained in the trade, you had quite a ride up to the next Zone. (almost..)

S&P Emini Tweet  - 1565

We still have two trading days left in this historic week. How will it end? If probability has its way, we expect to close the week below our highest Weekly Zone at 1586/87. We might spike it, and/or trade above it, but by close of business on Friday...

As I mentioned earlier, there are very few absolutes in trading. Anything can happen. ANYTHING! 

In the meantime, there's a Tweet in the wind for you.... 

Trading's not easy - but it can be Simple!

 

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