REviewing Overnight Action ES Going over the price action overnight looking for clues the market is leaving us. not much to do really till CPI comes out at 0830. if its hot/cold we have a plan. going to react and not forecast. we are Risk Managers. 01:48by BobbyS8130
ES1! evening updatePrice action from 8 and 11 March looks corrective. If confirmed, I'm looking for daily higher-high to go no higher than 5394.75. Key supports are 4999.50 and 5129.50.by discobiscuit1
ES daily price Action rEviewGoing over ES price action for the day. Tomorrow is the CPI report critical for the market. next leg will depend on the results. great day today. great price action and great plan. Long01:12by BobbyS8130
A neutral positionThe structure in the S&P 500 futures market with Friday and Monday's action is neutral as the market waits for the CPI number coming out on Tuesday. The overall bias for this market is still to the upside. It will be interesting to see can buyers follow through.01:26by DanGramza2
ES SP500 LongBullish MMS on 15m TF. Bullish SMT w/ NAS100. targeting clear buyside liquidity Longby DemocripzUpdated 0
Morning Price Action REview ESgoing over the morning Price Action ES. looking for clues and which levels we need to engage in. took some TSLA, MRNA, RBLX, GOOGL, and looking to sell the miners on sell setups. no setup no trade. always know where you'll get out if you're wrong.01:20by BobbyS8130
SP500**SP500:** The price made a new high of 5258.00. The bullish trend is expected to continue.Longby simaoxceps0
ES Trading Into Key AreaES currently trades into the near-term range VPOC - Range VPOC is always a strong level that traders should monitor the price reaction to. This area will be the main watch for today's session. by OpinicusTrades0
Overnight Price Action REview ESGoing over the ES overnight Price Action. looking for clues and trying to listen to what the market is trying to tell us. we did have some shorts in ES 2 pts from hitting our target. got out break even. no setup no trade is the motto for today. 02:20by BobbyS8130
3/11 Monday Trading PlanTrading Plan for Monday, March 11th, 2024 Market Sentiment: Neutral to Bullish Weekly Volatility Risk: High Supports to Watch: Immediate Supports: 5196, 5187 (major), 5181, 5176, 5168 (major), 5163 (major), 5155, 5147, 5140, 5136, 5131, 5126 (major), 5116, 5108, 5103, 5095, 5090 (major), 5084 (major), 5076, 5072 (major). Resistances to Monitor: Key Resistances: 5205 (major), 5211, 5220 (major), 5232, 5241 (major), 5254, 5262 (major), 5270-73 (major), 5280, 5290 (major), 5296, 5309 (major), 5326, 5330 (major), 5348, 5359, 5366, 5377 (major) Trading Strategy: Cautious Trading: The early week dip suggests a more cautious approach for Monday's trading. Err on the side of capital preservation by limiting aggressive trades. Long Opportunities: Look for potential long entries at major support levels, particularly 5187, 5168-63, and 5126. Counter-trend Cautions: (For experienced traders) Be aware of potential short opportunities at resistances like 5262 and 5241, but remember the overall bull trend remains in force. Bull Case: Trend Continuation: The overall bull market is still dominant. Defending 5187 (and ideally 5163) supports would signal that another leg up is likely, targeting 5262+. Adding on Strength: Monitor reclaims of 5211 for potential long entries. Bear Case: Breakdown Signals: A decisive break below 5187, particularly a failed breakdown, could trigger a move down the levels. Watch for shorting opportunities on confirmed breakdowns. News: Top Stories for March 11th, 2024 Stock Market Strength: The S&P 500 continues its record-breaking run, with a strong 7.11% return year-to-date. AI Drives Tech Boom: AI stocks, led by Nvidia's impressive earnings, are boosting the technology sector. Fed Outlook: The Federal Reserve's plans for interest rates are a key focus as investors anticipate potential cuts in late 2024. US Economic Picture: The latest GDP growth projections suggest a potential slowdown, but strong earnings and market momentum are positive indicators. Global Outlook: The IMF's upward revision of global growth forecasts points to a return to normal growth levels. Regulatory Updates: Fed officials are planning new rules to prevent banking crises, and the finalization of Basel III could have significant implications for the sector. Additional Considerations: Historical Trends: Historically, a strong January and February for the S&P 500 tend to foreshadow continued gains over the following 12 months. Inflation Expectations: Monitor potential for a rebounding inflation rate later in the year.by spytradingpro0
Candle wicks signal failed breakdowns?Looks like a failed breakdown here? Bears may be trapped under the 5180 level I am long at 5186Longby NCHammer111
Options Blueprint Series: Straddle Your Way Through The UnknownIntroduction Options trading offers a dynamic avenue for investors to navigate the financial markets, and among the myriad of strategies available, the Straddle strategy stands out for its unique ability to capitalize on market volatility without necessitating a directional bet. This article, part of our Options Blueprint Series, zooms in on utilizing Options on S&P 500 Futures (ES) to employ the Straddle strategy. The S&P 500 index, embodying a broad spectrum of the market, presents a fertile ground for options traders to implement this strategy, especially in times of uncertainty or ahead of major market-moving events. Understanding S&P 500 Futures Options Options on S&P 500 Futures offer traders and investors a versatile tool for hedging, speculating, and portfolio management. These options grant the holder the right, but not the obligation, to buy or sell the underlying S&P 500 Futures at a predetermined price before the option expires. Trading on the Chicago Mercantile Exchange (CME), these instruments encapsulate the market sentiment towards the future direction of the U.S. economy and stock market. Their popularity stems from the leverage they offer, alongside the efficiency and liquidity provided by the CME, making them an effective instrument for executing sophisticated strategies like the Straddle. The Core of the Straddle Strategy The Straddle strategy in options trading is a powerful method to exploit volatility. It involves simultaneously buying a call and put option on the same underlying asset, with identical strike prices and expiration dates. This non-directional strategy is designed to profit from significant price movements in either direction. For S&P 500 Futures options, this means traders can position themselves to benefit from market swings without trading the trends. The beauty of the Straddle lies in its simplicity and the direct way it captures volatility, making it a commonly used strategy in times of economic reports, earnings announcements, or geopolitical events that can trigger substantial market movements. Executing the Straddle Strategy on S&P 500 Futures Options Implementing a Straddle with S&P 500 Futures options involves a calculated approach. The first step is selecting the right expiration date and strike price, typically at-the-money (ATM) or near-the-market values of the ES options, to ensure a balanced exposure to price movements. Timing is crucial; initiating a Straddle ahead of anticipated volatility spikes can be more cost-effective, as option premiums tend to rise with increased uncertainty. Utilizing TradingView's comprehensive analysis tools, traders can gauge market sentiment, identify potential volatility catalysts, and choose the optimal entry points. Managing the trade requires vigilance, as the key to maximizing profits with a Straddle lies in the ability to respond adeptly to market shifts, possibly adjusting positions to mitigate risks or capture emerging opportunities. Market Analysis for Straddle Execution For a successful Straddle execution on S&P 500 Futures options, thorough market analysis is indispensable. Volatility, the lifeblood of the Straddle strategy, can be assessed using various technical indicators available on TradingView, such as the Average True Range (ATR) or the CME Group Volatility Index (CVOL). Economic indicators and scheduled events also play a crucial role. Traders should closely monitor the economic calendar for upcoming reports or news that could sway the market, adjusting their strategies accordingly. By analyzing past market reactions to similar events, traders can better predict potential price movements, enhancing their Straddle trade's effectiveness. Implied Volatility and CVOL Understanding Implied Volatility (IV) when trading Straddles is essential. IV reflects the market's expectation of a security's price fluctuation and significantly influences option premiums. Since the S&P 500 Futures is a CME product, examining CVOL could provide an advantage to the trader as CVOL is a comprehensive measure of 30-day expected volatility from tradable options on futures which can help to understand if options are underpriced of overpriced at the time of the trade. Strategic Risk Management for Straddle Trades Risk management is paramount in options trading, especially with strategies like the Straddle that involve multiple option positions. Setting predefined exit criteria can help traders lock in profits or cut losses, ensuring that one side of the Straddle does not negate the other's gains. It's also vital to consider the time decay (theta) of options, as it can erode the value of positions as expiration approaches. Utilizing stop-loss orders or adjusting the Straddle to a more defensive setup, like transforming it into an Iron Condor, are ways to manage risk. Moreover, traders must keep an eye on liquidity to ensure they can adjust or exit their positions without significant slippage. Case Study: Navigating Market Uncertainty with a Straddle on ES Options Let's examine a hypothetical scenario where a trader employs a Straddle strategy on S&P 500 Futures options ahead of a potential major expected movement as the S&P 500 gaps up significantly after making a new all-time high which may lead to an unsustainable market condition. The trader selects ATM options with a 50-day expiration, expecting a sharp price movement in either direction. Key S&P 500 Contract Specs Tick Size (Minimum Price Fluctuation): 0.25 index points, equivalent to $12.50 per contract. Trading Hours: Nearly 24-hour trading, starting from Sunday evening to Friday afternoon (Chicago times) with a 1-hour break each day. Cash Settlement: No physical delivery of goods; contracts are settled in cash based on the index value. Margin Requirements: Traders must post an initial margin and a maintenance margin, set by the exchange as a recommendation, to hold a position. These margins can vary based on market volatility and changes in the index value. Currently: $11,800 per contact. Trading Venue: S&P 500 Futures are traded on the Chicago Mercantile Exchange (CME). Access and Participation: Available to individual and institutional investors through futures brokerage accounts. Leverage and Risk: Futures offer leverage, meaning traders can control large contract values with a relatively small amount of capital, which also increases risk. Long Straddle Trade-Example Underlying Asset: E-mini S&P 500 Futures (Symbol: ES1!) Strategy Components: Buy Put Option: Strike Price 5200 Buy Call Option: Strike Price 5200 Net Premium Paid: 195 points = $9,750 Micro Contracts: Using MES1! (Micro E-mini Futures) reduces the exposure by 10 times Maximum Profit: Unlimited Maximum Loss: Net Premium paid Conclusion The Straddle strategy, when applied to S&P 500 Futures options, offers traders a potent tool to potentially profit from market volatility without taking a directional stance. By understanding the nuances of the S&P 500 Futures options market, meticulously planning their Straddle setups, and employing rigorous risk management practices, traders can navigate the complexities of the options landscape with confidence. Continuous learning and practice, particularly in simulated trading environments, are essential for refining strategy execution and enhancing trade outcomes. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.Educationby traddictiv2
Possible period of acceptance here Price action is at an interesting juncture just below resistance from this morning's action and last Friday's close. If price was to sell down from here, I will be short at 5183Shortby NCHammer0
ES Failed Breakdown alertIf the failed breakdown is to play out, the trigger is the break of 5201 which is quite evident on the 2 hour chart. You have to be stupid not to see it and equally stupid not to go long if it plays out.Longby nctrades88110
Weekly price Action Review ESGoing over the weekly Price Action for the ES. sharing what we found with our scans and our plan for the next day or 2. 03:40by BobbyS8130
Possible reversal AFter the attempted sell off this morning, market might be trying a fakeout reversal. I've got a buy order at 5193.50Longby NCHammerUpdated 0
Short ESWeak start for ES. Shorted at 5183.50 after retest of the box pattern and failure there Possible continuation of the weakness seen on Friday Shortby NCHammer0
SP500, Game plan.ES/SP500/US100 Hello Traders, Welcome back to another market breakdown. Today, I've got an exciting video for you as I dive into the current state of the S&P 500 and explore various strategies based on different market scenarios. Whether you're an experienced investor or just getting started, this video will help you better understand how to navigate the dynamic world of the stock market. Trade safely, Trader LeoShort11:49by Leo-btm2
Example of trading a short on flag pattern failureThe chart shows the setup. Wait for a bearish engulfing candle to form which breaks down out of a well defined range. Place a sell order at the lowest low of that rangeShortby NCHammer0
ES/MES Correction EstimatesVolume profile cannot lie. We are needling out, there is no oxygen up here, and this rally broke through the 50% line of this range on a total abstract squeeze. So... Bears see the fatigue and they see a rate decision in June. I have a chart of the Mag 7 only, because they are the real index. It's gone parabolic. And it has a weekly candle that is a big tall Doji. And the volume is even more of a needle than the indexes. The old market was boring. Mag 7 trade like small cap. They are the only thing that seems to matter. So, we have to accept that price swings will be huge and dramatic. So a drop to 3700, the bottom of the major volume range over this last few years, was a big deal ten years ago, but now? It's the new normal. I'm not saying I've done a good job trading it, I'm just taking a swing at it. This rally was terrible. It was ugly, jittery, low volume, squeeze after squeeze until we reached a fib level on this channel that we had not retested. Now that we have, and we're on zero volume, this this can correct. Mag 7 will correct. And it will be glorious. I'm very excited about the support and save at my 23% channel fib, but also, coordinates with swing low on the volume block we've made over 3 years. When that volume block saves us, oh baby the true rally on good volume can begin. Tesla has a gap on it's chart at 85 and I was like... wut? We really gonna go down there? But yeah, this will let it get down there. And there is zero chance it gets lower. Man... Wish I had more cash for June. Maybe I'll trade better on the way down.Shortby CaptainLogik0
Micro E-mini S&P 500Micro E-mini S&P 500, Supply and demand strategy, Futures, Short and Long Longby blaz860
ES/SPX Weekly Levels and Trade Plan 03/11 - 03/15Weekly Plan 03/11 - 03/15 Watch the 5120 Pivot Level Monday and especially Tuesday 03/12 (CPI Data) to see if Pivot gets rejected or taken and trade accordingly Sell Below 5120 Buy Above 5120by wasiheider0
ES1! evening updateDaily higher-high from last post completed. Green count has ES1! completing five-wave impulse off October 2023 low of 4236.25. Red count has ES1! needing one more daily higher-low and higher-high to complete what I'm interpreting as a C-wave and likely market top.by discobiscuit2