Day Trade Emini S&P 500 NASDAQ 100

5 min Emini Nasdaq 100

Hi,

The market gapped up by almost 30 points today,, such big gaps are usually based on fundamental news... Yes, rumour has it that FED is going to cut rates again...

If the gap is 30 point, do you expect it to close? More often than not, a gap of such magnitude is a runaway gap... meaning it will not close! The smart thing to do is to trade in the direction of the gap....

I waited till price broke the resistance line formed by the morning prices and I entered 1 contract at 2073... I further entered 2 contracts at 2077... Today's trade is based on price momentum and the strong runaway gap up...

I held my position all the way till 2088 when stochastics and Short-term MACD appeared to be topping out and I exited at 2088 with profits of $740.

Fundamentals:
Wall Street barreled higher Wednesday for the second day in a row, giving the Dow Jones industrial average its biggest two-day point gain in five years after a Federal Reserve official hinted that the central bank may lower interest rates again.

Investors' renewed hopes for a rate cut added to their relief that companies that made losing bets on subprime mortgages, such as Citigroup Inc. and Freddie Mac, are coming up with ways to raise cash. The market was clearly optimistic that at least some of the damage from the months-long credit crisis was finally being mitigated.

However, Wall Street has been fickle in recent months, with the Dow often rising and falling by triple digits, and no one is betting that the mortgage crisis that tripped up the nation's financial industry this year is over or that the market's huge gains so far this week will stick. Despite its spectacular advance, the Dow remains more than 6 percent below its Oct. 9 record close over 14,000, having plunged due to worries that the housing market's slump will lead to further losses for banks, and that the Fed can't keep slashing rates.

Posted by Michael Taylor at 5:47 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Market remains volatile as oil hits all time high and credit fears haunt the market.. There is no apparent trend and I don't blame you if you remained on the sidelines for these few days..

Today's trade is based on support and resistance lines... Notice the lines I drew on the chart? These are all support or resistance lines formed by price during the morning session.. Traders have to pay extra attention to how price behaves around these regions...

At around 15:05, price began a slight upward thrust, but I did not enter yet... when price broke through the resistance line, I longed 1 contract at 2017. This was accompanied by stochastics and MACD cutting the signal line. notice that these 2 indicators formed a double bottom too? This was enough signal for me to enter... As price broke the second resistance line, I longed another 2 contracts at 2028 and held it all the way till 2033 when stochastics started to turn down.. profits of $520.

Posted by Michael Taylor at 5:27 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How is it going lately? The market is in a down trend today... Weak price action... Today's trade is not the typical trade which I do. It is based more on price momentum and support and resistance lines...

At 14:40, you can see that price did not manage to break through the resistance line formed by yesterday's close. It went on to break the moving averages and stochastics also went down... I shorted 1 contract at 2030 and another 2 more contracts at 2020 when price broke the support line formed by low of the morning session... I held my position all the way till the end when price moved up with stochastics and Short-term MACD cutting the signal line... I exited at 1997 with $1580 profits.

Posted by Michael Taylor at 5:07 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

market gapped up today only to come down again in a beautiful triple top coupled with stochastics and MACD cut down. Notice that Short-term MACD cut the signal line first and then Mid-term MACD cut the signal line too confirming the trade...

I shorted 1 contract at 2057 and another 2 more contracts at 2040.. Notice how beautifully a trendline could be drawn? I kept the position all the way until stochastics broke up from the oversold region and Short-term MACD cut the signal line, this was coupled with price cutting the trend line... I exited at 2027 with profits of $1120.

Fundamentals:
The minutes present relatively little in the way of new developments, but it remains relatively clear that Fed officials were reluctant to cut rates aggressively as of their previous meeting. This may change, however, as credit and lending market conditions continue to worsen and risks to growth intensify. Markets have responded by sending short-term market yields lower in the wake of the result, but it is interesting to note that Fed Funds Futures have pulled back rate cut expectations through the Fed's December 11 meeting. Traders remain relatively indecisive following the release, and it seems as though the Fed may face an uphill battle ahead of their upcoming rate decision.

There was little reaction to news that construction of new homes and apartments rebounded 3 percent in October, the largest gain in eight months. The report was not viewed as a sign that the badly wounded housing sector has begun a turnaround because permits for new construction plunged a full 6.6 percent, foreshadowing slower building ahead.
"Permits matter much more than starts because they are less affected by the weather. October was very warm relative to norms across the country as a whole, so unadjusted activity fell less than usual, generating the rise in adjusted starts," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Posted by Michael Taylor at 5:07 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How is it going? Market gapped up only to close the gap and went beyond it... I missed the gap closure.. but I noticed that there was strong support at yesterday's low... price basically rebounded... but I did not trust the rebound...

however, at 10:40 price action appeared to be forming a double bottom and stochastics and Short-term MACD was forming the same pattern as well.. Also, I figured that price could not go down much further.. there was good risk/reward ratio.. and I longed 1 contract at 2022 with another 2 more contracts at 2030 after price pulled back a little.. I held my position all the way till 2045 when stochastics dropped from over overbought region and Short-term MACD cut the signal line... profits = $1060.

Posted by Michael Taylor at 5:31 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Market gapped down today, closed the gap and spent most of the time below the moving averages... however, price action is jittery and short-term MACD remains close to the zero line.. Such is the condition I have been trained to avoid... There is no trade today...

Posted by Michael Taylor at 5:44 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How is it going? Market gapped up today only to close it vigorously down.. But after that it bounced up and down without direction.. I did not enter the market... I only started paying attention when a double top formed... But I still did not go short... reason being very simple,,, there is limited downside movement.. the moving averages are support price.. I must wait for price to break the moving averages before I go short...

Then at 15:35, price started to break the moving averages and I shorted 1 contract at 2060 and another 2 more contracts at 2056... I held it all the way till a white candle appeared and stochastics started to move up... I exited at 2044 with profits of $800.

Posted by Michael Taylor at 5:28 PM | Permalink | Comments (0) | TrackBacks (0)

5 mini Emini Nasdaq 100

Hi,

How is it going? Ther market gapped up today... In fact it went even further up.. I did no play the morning session as I was suspicious of the gap up... however, by noon, the market showed considerable momentum and strength and I began to look out for signal to go long....

Stochastics turned up with price going up from the moving averages, I longed 1 contract at 2035 and another 2 more contracts at 2050 when price broke the highs established by the morning session... Stochastics whipsawed up and down... but price never broke my moving averages... I held my position all the way till the end with profits of $1260.

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Today's trade is a little different from the usual trades that I make... I had to wait till the afternoon session before seeing an opportunity.. Price formed a double top and broke the support line established by the morning session. Notice that this is accompained by the long-term MACD cutting the signal line.. I shorted 1 contract at 2024 and another 2 more contracts at 2019... I held my position all the way till the end and exited at 1990 with profits of $1840.

Posted by Michael Taylor at 5:49 PM | Permalink | Comments (0) | TrackBacks (0)

Dear Traders,

I know many of you have been wondering what happened to my website. I have spent the last couple of days trying to get things right. Meanwhile I have upgraded my blogging software so that it will not be so prone to spams.

In the meantime, if you have any questions, pls email to daytradeemini(AT SYMBOL)gmail.com as I do not have access to my daytradeemini.com emails for now.

Thanks for all your support. Really appreciate it.

Good Trading,
Michael Taylor

Posted by Michael Taylor at 5:33 AM | Permalink | Comments (0) | TrackBacks (0)

Dear Traders,

I know many of you have been wondering what happened to my website. I have spent the last couple of days trying to get things right. Meanwhile I have upgraded my blogging software so that it will not be so prone to spams.

In the meantime, if you have any questions, pls email to daytradeemini(AT SYMBOL)gmail.com as I do not have access to my daytradeemini.com emails for now.

Thanks for all your support. Really appreciate it.

Good Trading,
Michael Taylor

Posted by Michael Taylor at 5:33 AM | Permalink | Comments (0) | TrackBacks (0)

Dear Traders,

I know many of you have been wondering what happened to my website. I have spent the last couple of days trying to get things right. Meanwhile I have upgraded my blogging software so that it will not be so prone to spams.

In the meantime, if you have any questions, pls email to daytradeemini(AT SYMBOL)gmail.com as I do not have access to my daytradeemini.com emails for now.

Thanks for all your support. Really appreciate it.

Good Trading,
Michael Taylor

Posted by Michael Taylor at 3:51 AM | Permalink | Comments (0) | TrackBacks (0)

Dear Traders,

You might have noticed that my homepage was down for the past two days. Many readers have emailed me and asked about the status. Thank your for all your support.

I have been notified by my hosting service that some hacker had tried to use my domain to send out spam mails. I am still trying to solve the problem and locate the alicious script on my server.Scrolling through all the directories and files in my server is a headache... I have to remove it. If any of you have a good method to identify and remove this script, pls let me know.

In the meantime, if you have any questions, pls email to daytradeemini(AT SYMBOL)gmail.com as I do not have access to my daytradeemini.com emails for now.

Posted by Michael Taylor at 9:51 AM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100 

Hi,

How's it going lately.. market gapped up and immediatley closed the gap.. it went down further but started to rebound at around 2200, obviously there's strong support there..

I did not go long immediately,, today seemed like a volatile day.. but at 11:40, price started to bound back up again after briefly touching 2200, this time, price appeared to be forming a double bottom pattern...

Stochastics also went up and I longed 1 contract at 2205 and another 2 more contracts at 2207... This proved a good decision and price went up all the way to break through my moving averages and I exited at 2228 when stochastics started to turn down with $1300 profits.

Posted by Michael Taylor at 5:15 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Market gapped down and there wasn't much action with Short-term MACD close to the zero line... I stayed out of the market... It was until aroudn 15:15 when price started to drop vigorously that I began to take notice.. price had failed to break out of the resistance formed at 2238.. and Stochastics was turning down... I shorted 1 contract at 2225 and and got out at 2214.. with profits of $220. There wasn't enough room for me to trade another 2 more contracts.

Fundamentals:
Wall Street plunged Thursday, pulling the Dow Jones industrial average down more than 360 points as investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy.

Mindful of a warning from the Federal Reserve Wednesday about inflation, the market nervously watched the price of oil, which passed $96 a barrel overnight for the first time before dipping on profit-taking. The Fed, which cut interest rates a quarter point, said in a statement that inflation remained a concern, and oil's ascent to another record raised the possibility not only that the Fed might stop cutting rates, but that it might even consider raising them if inflation accelerates.

Meanwhile, Wall Street also had to contend with concerns about a slowing economy. A report from the Commerce Department indicated consumers scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. And a trade group reported that manufacturing in the U.S. grew in October at the weakest pace since March.

The combination of factors led investors to pull back sharply from Wednesday's rally, in which the Dow climbed 137 points after the Fed said the economy had weathered the summer's credit crisis.

Posted by Michael Taylor at 5:50 PM | Permalink | Comments (0) | TrackBacks (0)