Wednesday, February 2, 2011

E-Mini S&P 500 Futures Trade Plan for Wed. 2/2/11

Notes for Overnight Session (posted Tuesday evening)
At this point, Buyers are in Control and I'll be looking to buy pullbacks into Support tomorrow. The existing S/R Zones are in-play, and we have Resistance at 1303.75-1305.75, followed by 1307.50. I expect ES to test 1303.75 at some point tomorrow, so I'll be looking to Short if price moves too far away from that level.

Trade Plan for Wednesday 2/2
It's easy to get caught up in the charts and forget that the markets move because of the participants (the people), and half the U.S. is dealing with a severe snow storm today. Chicago got hit pretty hard and CME has delayed the pit open till 10 AM (CT) -- Globex is unaffected. Participation is likely to be lower today, which means a narrower range, and limited opportunity. After yesterday's Trend Up day, buying pullbacks at Support is a safe strategy. We could get another new high today, but I anticipate Responsive Sellers to be active and sell into it. If we get a push beyond 1306, 1303.75 can be used as a target on Shorts. On the downside, I anticipate the Selling to shut off by the 1290.25-1292.25 Support Zone, if not sooner. I expect a Balanced session, so my focus will be on entering at the edges, while using the middle of the range as a scale-out target and the other side of the range as the final target. A break below 1290 could turn this into a failed breakout -- again, this isn't expected but it's good to be prepared.

Econ Data
MBA Purchase Applications at 6:00 AM (CT), Challenger Job-Cut Report at 6:30 AM (CT), ADP Employment Report at 7:15 AM (CT), and EIA Petroleum Status Report at 9:30 AM (CT).

5-min Chart with the EMiniPlayer S/R Zones

No comments:

Post a Comment

At the minimum, please provide your name or Twitter handle when posting comments. Do not post as Anonymous. Comments that contain links to commercial websites will be marked as spam.