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Tuesday 26 November 2013

Too risky to trade today / "Trading Signals to watch" results

Stocks are weak yet still trying to stay above 1805 & 1808
Supports & resistances are broken
S&P Futures broke below 1800 then above 1805
Not quite safe to trade today although you could still trade at a higher risk & get a few wins using our "trading signals to watch" we mentioned earlier
"Look to buy S&P Futures @ 1801.45 if it rebounds & stays above
Look to sell S&P Futures @ 1805 or 1804 (higher risk but it's a new temporary resistance) if it fails & drops again
All for 30 minutes expiration
Watch S&P 500 @ 1800 (possible support), 1805 (possible turning point) & 1808 (possible resistance)"

S&P Futures rebounded @ 1801.45 at 9:28am EST & shot up to 1804 at 9:36am EST then trend changed & it dropped to expire @ 1802.45 at 10:00am EST (Time shown below is EST+13hours)
Buying @ 1801.45 & selling @ 1804 will both provide a win at the same time but it was risky as it suddenly dropped to 1799.45 5 minutes later yet went higher
It also traded around 1801.65-1803.65 before breaking above 1805 & dropped from 1806.65 (S&P 500's 1808)



S&P 500 rebounded @ 1800.87 to expire @ 1804.51 at 10:30am EST
It also dropped from 1805.14 (1805 slightly broken) to expire @ 1803.27 at 12pm EST
Then S&P 500 went back up to break 1805 & reach 1808 (1808 also slightly broken)
It finally failed to stay above 1808 & dropped sharply again to close @ 1802.76, confirming more profit taking at the end of day this week



Our "trading signals to watch" showed that it's still possible to win even in high risk situations
Yesterday's analysis of "Watch S&P 500 @ 1800 (possible support), 1805 (possible turning point) & 1808 (possible resistance)" was quite accurate although they're slightly broken
But we still need to be very cautious because the market showed that it's dangerous with sudden sharp drops & surges today

Look to sell S&P 500 near end of day for 4pm EST expiration this week (high risk), especially on Friday which is the end of day, week & month at the same time
Watch S&P 500 @ 1800 (possible support), 1805 (possible turning point) & 1808 (possible resistance) again tomorrow plus 1803 as new possible support
S&P 500 closed slightly below 1803 today & yesterday but used 1803 as support at 12pm EST to shoot up to 1807

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