Sometimes the markets are more exciting than others. Regardless of volatility, you take what you can get from the markets; today’s breakout trade in the eMini S&P futures of taking a little when you’re only given a little.
A number of stock index futures had breakout setups for today. That included the eMini S&P, which had an inside day and NR7 patterns on Wednesday. This setup meant we would look for a breakout, directional move in the market today. For a breakout setup we identify nearby support and resistance points and look to enter a trade in the direction of movement, anticipating that it will serve as a springboard to a larger move in that direction.
For the June eMini Futures our breakout levels were 2348.75 (Wednesday low) on the downside and 2360.50 (Tuesday high). There was a move above the high early last night however I usually only take signals during stock market hours (8:30 AM to 3:15 PM Chicago time) so the signal was still in play for the day session.
The early morning move was higher, taking out the Tuesday high around 9 AM this morning and triggering our long entry. It made a double top as the session high of 2366.75, our first signal to take profits. A late morning selloff below the Tuesday high then gave a second long entry around 11:45 AM. This rally made a lower high, a sign of weakening upside momentum. It wasn’t much today, but that’s what the market offered.
Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
