Emini Trading

Tuesday

Feb212012

Learn to Trade Emini Futures - Head And Shoulders Pattern

February 21, 2012 at 6:17 PM

(QQQQ)(DIA)(SPY)(GLD)(SLV)

The S&P500 Emini Futures took a backseat today as all eyes were on the Dow Jones Industrial Average (DJIA) and the 13,000 level. The last time the Dow closed above 13,000 was May 19th, 2008. Although we did trade above 13,000 intra-day, the market sold off into the close so "Close, but no cigar". A more important level to watch perhaps is how the S&P500 Cash Index handles 1,370. While it may not receive as much press, of the two I believe it to be the more critical metric of whether the markets continue what has thus far been a very impressive multi month rally against a backdrop of angst and the proverbial wall of worry.

Definition of 'Head And Shoulders Pattern'

We don't spend a lot of time on specific patterns but occasionally one shows up so nicely it just seems wrong not to point it out. So what is the Head and Shoulders Pattern? According to Investopedia:

A technical analysis term used to describe a chart formation in which a stock's price:

1. Rises to a peak and subsequently declines.
2. Then, the price rises above the former peak and again declines.
3. And finally, rises again, but not to the second peak, and declines once more.

The first and third peaks are shoulders, and the second peak forms the head.

This video is so nicely done I feel compelled to share it with you -

While it is not my personal "go to" reversal pattern, the "head-and-shoulders" pattern is believed by many traders to be one of the most reliable trend-reversal patterns yet discovered.

The one we pointed out today during the Live Radio Broadcast was not only "picture perfect" but it appeared as the Dow was testing that all important 13,000 number.

SP500 Emini Futures Tweet

Last night on our Public Twitter Feed - @CFRN we suggested selling 1364 Stop.

At this point we Tweeted to consider locking in some or all profits. Did you?

Dow 13,000

CFRN Partners were presented with several dynamic trade setups on the Dow (YM) Emini Futures today as the world at large was transfixed by the cash index.

Opening bell -

Dow (YM) Emini Futures 02/21/12

Mid-morning

Dow (YM) Emini Futures 02/21/12

Early afternoon -

Dow (YM) Emini Futures 02/21/12

Look good? If you can send an email, "I can teach you to trade this setup in 1 Week!"

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we make no such promise.

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Emini Podcast for Tuesday 02/21/12

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Friday

Feb172012

Learn to Trade Emini Futures - Support And Resistance

February 17, 2012 at 9:45 PM

(QQQQ)(DIA)(SPY)(GLD)(SLV)

The S&P500 Emini Futures ended the week on a high note! House lawmakers voted 293-132 today to approve the bill which will extend the current 4.2% payroll tax through the end of 2012, as well as extend prolonged jobless benefits and prevent payment cuts for Medicare doctors. The Senate quickly followed, approving the bill in a vote of 60-36.

We've wasted an awful lot of time, money and energy getting this resolved so what does it really mean? The typical family making $50,000 a year will keep about $40 with each paycheck. That pans out to $20.00 per week. Seriously? $20.00 per week for a family making $50k per year. What will $20 buy?

4 Caramel Macchiato's at Starbucks?
Dinner at Mcdonald's?
Enough quarters to do your laundry?

It certainly won't fill your gas tank. Yet, a 1-term Senator who made his career getting you $20 a week for the next 8 months will retire on a pension of $170k annually with a full benefits package including health care for himself and his family. Who says Royalty is dead?

But hey... most of us aren't Congressmen. We are humble believers who trade for a living. So let's talk about the things that really matter.

Love God
Love People
Care for Widows and Orphans
Make 2 Points A Day

We covered Support and Resistance recently here on the Blog but I am pulled back to it again tonight. It doesn't matter if you Day Trade, Swing Trade, or Position Trade, it matters. Period!

Support And Resistance

When you strip away the emotion (try that) it's such a simple concept. Support is the price where people will gladly buy your product. Resistance is the point where the hive mind will suddenly say "No way Jose' " (sorry Jose') That's what makes a market, any market, and that's what also makes it a great day to be an Emini Day Trader.

Unlike the Stock Trader who spends countless hours, perhaps months, researching a stock until they are ready to marry it ('till death do us part), we the Emini Futures Trader are a bit more fickle. (at least the successful ones) I can buy the open, sell the news, or any variation that suits me. As a trader I'm more of a speed dater than the marrying kind. Is this morally wrong or unethically sound? There are some that might try to tell you that it is. Ask them to trade live in front of you. Then ask them the question again.

We've covered Dynamic Support and Resistance, Fixed Support and Resistance, and how the two work so well together. What more could I possibly add? Quite frankly, not much...

Support and Resistance are immutable facts, yet they are constantly subject to change. Whatever the hive mind says is fair, as it turns out, really is fair. We can complicate it, twist it, deny it, or simply embrace the fact. That defines CFRN - We Embrace It!

Support? yes
Resistance? yes
The Leper? oh yes...

You get my point. If the market is climbing, let's buy it. If it's dropping, let's sell it. If both happen in the same hour? Embrace it, and trade it or simply step aside. The next setup is just over the horizon...

I'm going to post a chart that will naturally make you a bit suspicious unless you're already a Partner. Before the market opened this past Monday morning we put our reputation on the line as we do every single week and said the highest we believe the S&P500 will trade is 1360/1361. Here's how the week ended -

S&P500 Emini Futures 02/17/12

Voodoo you ask? No, as the Partners already know, this is not some arcane art but simply a function of math, or in lay speak - Support and Resistance.

So what's my point? That is my point!

It's a self fulfilling prophecy, not a perfect science. You either own it, or it will own you. You might think it was just a lucky call. I don't blame you.

“Luck is what happens when preparation meets opportunity.”

At the bottom of this web page is a tool bar. On that tool bar is a link "CFRN Emini Charts" where you will find over 700 charts that all reveal the same thing, over, and over, and over again.

Does it only apply to the S&P500 Emini Futures? Let's look at the DOW -

That number went to our Partners before the market opened this past Monday. Do we always nail it that perfectly? No. Our Weekly Zones should be considered an "area" at best. Sometimes we just miss it all together. That's the honest truth. However, the 700 charts below covering the last 18 months might still be worth looking at.

Unlike other web sites and training rooms that guarantee you success, we make no such promise.

What we offer is simple