Welcome to E-Mini S&P Futures Strategies, Mini Dow, Mini Russell and Mini NASDAQ Trading - A discussion dedicated to independent traders of futures stock Indicies
The CME will be launching six currency pairs on March 23rd, on the following six currencies: EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD, USD/CHF
This could provide a great opportunity for those who trade cash FX with small accounts and are looking for a regulated environment, where market makers can’t just move a market and trigger stops.
All currencies are quoted in Interbank Terms. The largest regulated Forex market. If you would like to trade in a regulated, secure Forex market, get to know the new Forex E-micro futures, traded at CME.
One-tenth the size of the standard Forex futures. View contract size: http://www.cmegroup.com/trading/fx/files/FX-211_Forex_Emicros_Sell_Sheet.pdf
View the webinar: http://progressive.powerstream.net/008/00102/edu/forex_emicro/player.html
As an S&P day trader I have observed that the 3 to 3.30PM is a critical time for the stock index. There are two possible scenarios that could possibly happen during this time frame:
• The major trend of the day intensifies and continues into the close of the day at 4:15 pm
• Complete reversal of the trend for that day into the closing of the day.
Is this a tradable setup? Yes, it is.
Here are some caveats as to what could happen: I have noticed that professional traders and market makers tend to move the market in the opposite direction before they actually re-enforce or contradict the prevailing trend.
So for example if at 3:00pm the market is heavily down, then starting at approximately 3:05 pm, the market could show signs of recovery and appear to reverse as if suddenly in an uptrend, when in fact it’s a fake out probably caused from profit taking.
The bottom line is that you should wait for the first 5 and sometimes 10 minutes after 3 to see exact direction.
Odds are that the prevailing trend will continue into the close. Of course, this is not written in stone and the market can reverse, so one still has to wait to get complete confirmation.
The market is trading on fear right now and uncertainty, because nobody knows yet how bad the economy is going to get especially after retail sales were almost twice as bad as analysts anticipated and The Federal Reserve’s index of New York manufacturing slumped to minus-24.6, a record low.
The S&P Energy Index, once the year’s best performing industry group, is down 50% percent from its peak in May.
The VIX, as the Chicago Board Options Exchange Volatility Index is known, jumped to over 80. This “fear gauge,” has tripled since the beginning of September.
Efforts to calm financial markets probably won’t result in an immediate economic rebound, Federal Reserve Chairman Bernanke told the Economic Club of New York.
It appears the “safety net” created by the U.S. and Central banks will need more time to work…….but we strongly believe it will work and we won’t go into a Depression. We also believe as the moves by the central banks show noticeable progress the VIX will go lower to tradable levels as the market stabilizes. Much of the recession is already being discounted in the market. Be patient!
In the meantime we advise to primarily day trade the markets, especially the S&P. We are witnessing historic daily ranges in commodities and stock indices that normally have taken many months to do only in one day! The risk of loss in futures trading can be substantial no matter who is managing money. Past performance is not necessarily indicative of future results
Following the G-& meeting and their plans, the over night Mini SP is way up. Traders are not economists, and who knows if these world leaders came up with the right solutions.But you should fight your impulse to trade the over night market reaction, following any economic announcement. Have patience, and see what happens when the market open in the morning. Sometimes it’s a complete reversal. Patience is a virtue and in trading it would save you a bundle.
Whether you are a longer term trader or a short term trader, the same psychology could appear on a 3 min chart or on a weekly chart. Look at this post from Futures Portal
Courtesy of Genesis FT
This week was a pure example that one can not trade the emini S&P and/or other liquid indicies like Mini Dow and Mini NASDAQ unless you have a laser beam trading methodology. If there is a question that traders have asked themelves on a daily basis is “is the this the bottom”?
The bottom line is that regardless of the volatility level we can not guess tops or bottom by trader’s intuition.
Just when you think that a bottom it…it probably did not. Same goes to the up side.
What can you do to improve your trading?
1) Trail your stops as the maket goes your way. Again, stop guessing the ups and downs of the markets.
2) Once you placed your stops NEVER move them. Never!
Good Luck!
http://www.tradersplatform.com/contactus.htm
Listing Date Sunday, October 26, 2008 (trade date Monday, October 27, 2008)
Contract Name E-mini S&P 500 Euro denominated futures NP08-12
Description Futures replicating the popular E-mini S&P 500 contract with currency denominated in euros as opposed to USD
Instrument Type Futures
Product Code(s) EME
Ticker Symbol(s) EME
Trading Venue CME Globex® platform
Trading Hours Sundays through Thursdays from 5:00 p.m. Central Time (CT) to 3:15 p.m., CT next day, reopening between 3:30 pm and 4:30 pm CT
Contract Size €50 times the futures price
Valid Contract Months Dec08, Mar09, Jun09, Sep09, Dec09
Initial Contract Months Dec08
Minimum Price
Increments
0.25 index points for outrights
0.05 index points for calendar spreads
Value Per Tick €12.50 for outrights
€2.50 for calendar spreads
