Stock markets hit buy levels and bounce

Jason Sen DayTradeIdeas.co.uk

Emini S&P December barely moving as we trade mostly sideways for 7 sessions. The low & high for the last session were 5756 - 5820. (To compare the spread to the contract you trade)
Emini Nasdaq December hit my target & buying opportunity at 42350/250. Last session high & low for the last session were: 20056 - 20287.
Emini Dow Jones December longs at 42350/250 worked perfectly, hitting both targets before the close. Last session high & low for the last session were: 42245 - 42715.

Emini SP 500 September futures

Emini S&P moved very little last week, holding a 85 point range as we are struggle to push higher in severely overbought conditions. Shorts are a bad idea without a sell signal in such a strong longer term bull trend.
So I have no strong signals but if we continue higher look for 5875/85, perhaps as far as 5900/05.
My best suggestion on how to trade this market is to buy at support but be quick to take a profit in the low volatility conditions.
HOWEVER unfortunately we over ran the next support at 5775/5770 hitting 5756 before seeing the expected rebound.
If we continue lower today look for strong support at 5745/35 & longs need stops below 5730. Targets: 5755 & 5765.
A break lower this week however could target 5695/90 & even support at 5680/70. Longs here need stops below 5660.

Nasdaq September futures

The break above the August high of 20217/251 hit my targets of 20330/340 & 20400/430, but not quite as far as 20600 just yet, with a high for the week at 20538.
We just held at support at 20250/150 yesterday but longs need stops below 20050.
If we continue lower this week we meet very strong support at 19900/800 & longs need stops below 19700.

Emini Dow Jones September futures

We wrote: I think gains are likely to be limited in severely overbought conditions but there is definitely no sell signal & I will remain a buyer on any profit taking.
We did dip as far as support at 42350/250 as predicted & this did prove to be an excellent buying opportunity but longs need stops below 42150 on a retest today.
Targets of 42500 & 42650 were hit immediately, meaning we caught the low & high for the day.
A break lower this week however risks a slide to 42000/41900 & longs need stops below 41800.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Week ahead: RBNZ and BoC decide on rates ahead of all-important US NFP

The US dollar staged a modest recovery this week, perhaps as traders decided to cover some of their short positions amid slightly stickier or in-line US PCE inflation numbers for July, confounding expectations of softer prints amid the softness revealed in the CPI data for the month.

CFTC Report: CAD short covering leads; Gold buying surges

The week in one sentence: speculative positioning shifted more constructively in the week to August 25. CAD short covering led the move, followed by a broad reduction in EUR shorts and renewed Gold buying. GBP and VIX positioning also improved, while JPY positioning deteriorated and WTI flows diverged from weaker prices.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.