Emini Futures | Emini Podcast May 3, 2012
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ES Emini Hourly Chart 05/03/12
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The Tweets have been steady earners this week. In fact, every one has been off the same number. Install our Emini Futures Toolbar and never miss another Tweet!
ES Emini Hourly Chart 05/03/12
The S&P 500 Emini Futures gapped higher on the Globex open Sunday Night but failed to take out Friday's high on two attempts. The second failure led to lower markets into the Wall Street open and also triggered the Tweet we issued last night shortly after the session began. Today's high was 1397 on the day session and the low was 1389.75. Price rallied off the low to 1396.25 but has begun to show some weakness during the Asian session. Eurex markets are closed tomorrow. May Day is an official German holiday.
Tonight's trading tip is brought to you by our friend and co-host Mike Reed.
A gap up or gap down open is an emotional move, and often it will reverse course and turn in to a "trap open". Gaps that are less than 4 points on the SP Futures tend to get filled in the same day, especially Tuesday through Thursday.
The S&P 500 Emini Futures closed the week on a high note. As early as Monday we came within one point of our lowest Weekly Trading Zone -
ES Emini Futures Weekly Low 04/23/12
... and by Friday we tested our highest Weekly Trading Zone. As pointed out in the last Partner's Meeting, when we open open the week near the high or low of the projected range give consideration to an Options position. If you have questions about how to trade such a strategy call Burt @ 866-928-3310 or email support@cfrn.net. Here is the chart for Friday's closing high -
ES Emini Futures 04/26/12
The S&P 500 Emini Futures continued upward today on the strength of Apple's (AAPL) earnings and the FOMC statement. Fed Chairman Ben Bernanke commited to not only keep interest rates low until late 2014, he used the word "unchanged". He also stated the US Central Bank would not hesitate to initiate another round of bond buying if necessary as "Operation Twist" is set to expire in June.
Apple shares gained 8.9% to $610.00. The S&P settled at 1387.50 and has continued to drift higher on the Globex session. Last night's TWEET has shown a gain of 6.5 ES points so far. Lock in some profits as we wait for the European session to open.
The S&P 500 Emini Futures traded higher on Globex due in large part to Apple's (AAPL) better than expected earnings. Apple shares (NASDAQ:AAPL) were up 7% in after-hours trading following the report. The stock had dropped 13% since hitting an all-time high of $644 on April 10. Shares were down 2% at $560.28 at the close today prior to the release. Perhaps the old adage "An Apple a day keeps the Bears at bay" is true after all.
Our timing was perfect last night on the S&P 500 Emini Futures drop. We missed the ensuing pop however by 1 point. Last night our Tweet said to consider being short the ESM2 below 1370. Price dropped 16 points to 1354 which happened to be 1 point above our 1353 Weekly Trading Zone. In hopes that redundancy will get the point across, Weekly Trading Zones are an "area". Every time price approaches a WTZ you need to be alert and prepared to shift gears. If you successfully traded some or most of the move down and completely missed the bounce, that explains why you still have that great big smile on your face.