Emini FuturesCast / The Daily Pod 05/20/11

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

by DeWayne Reeves

The pre-rapture cast went surprisingly well. Just when the markets start to give us nice big swings... Game Over. BTW- since he was wrong in '94 we do plan to see you all on Monday. FYI- the Word really does say "No man will know" and that "He will come like a thief in the night". I just want to ask you one question - If He did come tomorrow, would you be ready?

"Marvel not that I said unto thee, Ye must be born again. / The wind bloweth where it listeth, and thou hearest the sound thereof, but canst not tell whence it cometh, and whither it goeth: so is every one that is born of the Spirit."
Jesus Christ 

E-Mini S&P 500: Stuck in the channel again!  The E-Mini S&P 500 in the wee hours of the morning had almost broken out of the channel at $1344.00. News from the Euro Zone seemed to contain the upside action as the sovereign debt fears come back into the picture. Fitch ratings agency had downgraded Greece and Norway withdrew a grant payment to the country. The Euro Zone may initiate another rate hike on the June 2nd meeting. The IMF approved a 26 billion dollar loan for Portugal to aid in their crisis and I believe we are in the midst of elections in Spain. The Euro is often correlated with the Stock Indexes and they often trade inverse to the US Dollar. The Euro FX is also at a critical juncture on the Daily Chart, so it will be interesting to see if we can shrug this news off! 

BP did well today. Mitsui & Co. will be sharing the bill for the cleanup in the Gulf of Mexico. The energy sector had a fairly positive day and the metals are trying to climb again. There may be supply disruptions from North Africa and the Middle East. Mergers and acquisitions were positive for the market as Barnes and Nobles may be sought after by John Malone’s Liberty Media Corp. The Exchange Traded Funds have suffered massive liquidations or outflows for  the commodities products. Many traders are standing aside for more confidence in the market.

It is unlikely that the Euro Zone is mended miraculously as the debt seems to only reoccur over again. While we would await a trend that provides clear signals, the market may give us some erratic moves next week. If funds are bailing out of commodities, where will they go? Will the managers simply retire?  I think not. I believe that the pricing has simply priced everyone out of the marketplace and we simply need to retrace for future bargain hunters.  Nevertheless stay alert – stay alive!

The big picture!  We see this market hanging on ready to slip. Any traders looking for a summer rally could be sorely disappointed. Potentially, where could we slide to?  $1290.00, if held, could support a still productive market.  This of course would be more of a longer-term projection. 

Monday, we have no major economic reports due out.

Last Night's Tweet ran for 10 points. It then retraced back to the Weekly Trading Zone @ 1340 mid-day and we said live on the air, "We may get the same move all over again." What happened?

Have a look...

So why was the area we sold important?  

Weekly Trading Zone 1339/1340

Why are Weekly Trading Zones important? Two very good reasons -

#1 It's where the market goes to do business (make a decision)

#2 CFRN Partners have the numbers before the markets open for the week.

Last night I promised a peek at this past weeks numbers, here they are...

Were these arrows painted on after the fact? Yep!

Did Price happen after the fact? Of course it did!

So what exactly did the CFRN Partners have BEFORE the markets opened on Monday? Have a look...

Could that have improved your trading this week? We also do it for other markets. I'll show you one more tonight. Here's the DOW Emini / YM.

Now all that looks real good right? But you're a day-tripper, right? So how do we manage that Big-Picture Stuff inside the Daily Grind? Just between you and me, here's how we nail it.

Come to the Live Trading Room on Monday and I will show you this exact chart WITH the indicators on. You will see that every single entry was defined to the tick. There was NO ambiguity. NONE! Unless you come and see it Live you will always wonder what might have been.....

Our Partners are Successful. They enjoy a sense of community. We invite you to join us!

"The webinar was very informative and you two put a great deal of time and effort into it.  I am truly enjoying the benefits of being a Partner.  The fellowship I experience each morning is very unique to the CFRN Trading Room; certainly nothing compared to the other trading rooms I've been in.  I truly believe you, Michael and Burt are looking after our best interest.

Looking forward to a long and rewarding partnership with CFRN."

God bless,

M.D.

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Podcast for Friday 05/20/11