Sunday 21 September 2008

Emini Between Wide Support and Resistance Band

Back from 10 days in Hawaii. There's plenty of commentary about the pro's and con's of government intervention in the markets. I'm not qualified to comment and so shan't.

However, I will say that the banning of short selling is just not right. Here in Australia the regulator has banned both covered and naked short selling of ALL equities for at least 30 days. This is not what free and efficient markets are about - it will end badly.

On the up side - Emini day trading opportunities have never been so good. Huge intra-day moves, massive liquidity and never a dull moment.

Emini Trading Range Image

Wide Support & Resistance Levels (Emini daily)

My swing trading oscillators are showing conflicting signals and so aren't much help directionally. We're caught between very wide support and resistance levels. Support is at 1,160 and resistance is at 1,290 - a difference of 130 points. In the middle there is a gap that looks like it might get filled.

Emini Hilbert Sine Wave Image

Hilbert Sine Wave (Emini 135 minute)

The momentum after the gap up open on Friday was down and we've now got a cyclical top formed on the Hilbert Sine Wave. This downward momentum may continue on Monday.

Emini Hilbert Sine Wave Weekly Image

Hilbert Sine Wave (Emini weekly)

However, longer term the weekly Hilbert Sine Wave cyclical low is still in place. We closed above the Support level, despite extreme volatility, and so we're still in an uptrend in this longer term time frame.

Emini Day Trade Image

Emini Day Trade (Emini 699 tick)

Last chart shows a day trading setup that caught Friday's low. This is how I use the Hilbert Sine Wave with Volume patterns to identify high probability turning points. This cyclical low in the 699 tick chart also coincided with and "End of Trend" signal on the 2,097 tick chart (higher time frame).

Hanalei Bay Image

Hanalei Bay, Kauai, Hawaii

Lastly, photo of one of my favorite places in the world - Hanalei Bay on the island of Kauai. If you ever get the chance, go see it - spectacularly beautiful. Oh, and that's my wife Vanessa - also spectacularly beautiful. Good luck with your Emini trading.

Emini trading articles filed under Support & Resistance :