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January 19th, 2012 Posted in Uncategorized

Futures and futures options trading involve substantial risk, and therefore are not suitable for all investors.

ES H2 and other equity index futures are trading higher this morning follow better than expect earnings reports from BAC, JPM, EBAY and others.

Weekly Jobless Claims were reported as well and unexpectedly fell by 50K to 352K. This report gave equity futures a pause but as I write this we're still trading near overnight/morning highs of 1309.00.

If you recall, I feel the ES H2 has been on a push to 1320/1340 range since 12/27/11. As of this morning, we're 11 handles off my lower end target. What this means is that the risk of going long ES H2 is getting higher.

Using ES H2 as a proxy for the other equity index futures, I'd like to see equity futures trade higher in the opening half hour. For ES H2, I'd like to see it trade above today's R1 of 1309.00 but stay under today's R2 of 1315.50. If this happens:

I'd be looking to place an order to SELL ES H2 at 1308.75 STOP

Other Markets:

SELL QM H2 at 101.50 STOP

I'll see how grains open at 9:30 CST. This market is also in need of a pullback just to keep this relief rally honest.

If you have questions, feel free to call me directly - 312.224.7882

 

Daily Pivots 1/19/12
EQUITIES R2 R1 PIVOT S1 S2
ES H2 1315.50 1309.00 1297.75 1291.25 1280.00
TF H2 786.8 781.2 771.0 765.4 755.2
NQ H2 2443.67 2431.83 2411.17 2399.33 2378.67
YM H2 12608 12556 12476 12424 12344
ENERGIES R2 R1 PIVOT S1 S2
QM H2 102.508 101.642 100.833 99.967 99.158
QG G2 2.567 2.518 2.487 2.438 2.407
GRAINS R2 R1 PIVOT S1 S2
ZS H2 1195.6 1189.0 1180.6 1174.0 1165.6
ZC H2 604.9 598.9 595.7 589.7 586.5
ZW H2 607.1 599.7 594.9 587.5 582.7
METALS R2 R1 PIVOT S1 S2
YG G2 0.0 0.0 0.0 0.0 0.0
YI H2 0.000 0.000 0.000 0.000 0.000

 

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