Emini Futures Trading / Back To The Future?

by DeWayne Reeves

E-Mini S&P 500: Will we return to prices of 10 years ago?

The onslaught of news that Osama Bin Laden has finally been neutralized takes me back to May of 2001and does the market cycle? Well the high of May 2001 was $1335.00 and from the E-Mini S&P 500 chart of today, we may be heading back to that zone. Hopefully, we will not have any other repeated occurrences of that year. Today, the US March Factory Orders were up +3.0 showing a more healthy recovery as this was the fifth straight month reflecting an increase. The increases in the Crude Oil actually had more of a positive note in our earnings reports as US Automakers, GM and Ford Motors have increased sales due to sales of fuel efficient cars. Other earnings reports due out later by Toyota and some Japanese Car makers may not bode as well with the earthquake in Japan having impeded the production of parts. Earnings reports were mixed today as MasterCard Inc. posted an increase of 2.4 to $282 with a 24 increase in quarterly profit, while Pfizer Inc. was down about 2 on its prescription drug sales lagging. Alcoa Inc. rose 3.7   on the idea that Rio Tinto may put in an offer to buy the aluminum producer. Sears Holdings was down 9.7 and First Solar also fell 2.6 . Chinese Internet Stocks also were down with Baidu down 5.2 . China still remains the chip master on the street as the they have $3 trillion in excess reserves to be allocated to an investment. They perhaps will set-up funds in commodity products such as gold, but many commodity contracts have only an expiration such as foods must be used or retendered within a specific time frame, crude oil dissipates over time as well.  They have invested in treasury bills and in the past in treasury bonds. It will be wise to follow the Chinese investment front as Beijing  keeps us posted

Wednesday,  we look forward to ISM Non-Manufacturing Index at 9:00 AM CST.

BETWEEN the LINES

The following question came up on the show yesterday and again today.

  "Can the CF_MA1 Indicator could be used as a standalone trading strategy?"

We covered the question during the broadcast but in case you missed it, here's the chart from today.

Wednesday, what to expect! We are technically still in buy mode on the Daily Chart for the moment, but the E-Mini S&P 500 seems to have weakened. Wednesday, we look for an inside to lower day!   Today’s range was $1358.50 - $1345.75. The market settled at $1352.00. Our comfort zone or point of control for this market appears to be $1353.00. Our anticipated potential range for Wednesday’s  trading may be $1356.50  -  $1341.50. The market stays bullish above $1341.50.  

Leslie Burton

Senior Market Strategist

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