carleygarner
Well-known member
- Messages
- 466
- Likes
- 9
June 17th, 2010
Join us for a FREE webinar hosted by PFG Best on July 29th at 3:30 pm Central to discuss "Futures Market Slang" : http://pfgbest.com/webinar/eventSummary.asp?skey=337713234
Light volume and options ex
According to our sources on the CME floor, the day started out with about 60 locals in the S&P pit and near the end of the day it was less than 30. Even later in the day they stated "The floor is clearing", so by the close there were likely even less. Aside from a few temporary spikes in volume, the action was nearly pathetic. Markets with few participants and scarce liquidity are dangerous for traders and should be avoided by the plague.
The June futures will trade overnight and settle tomorrow morning. If you are still holding June contracts you must get flat (or roll into September) before they settle. Quarterly settlement takes Friday's trade into account and involves an "ambiguous" formula that leaves your profits and losses at the mercy of math rather than trading skill.
We doubt that traders will come back to play before the weekend and expect tomorrows volume to be even less attractive than Thursday's. If you insist on trading, we recommend minimal position size and risk. In this type of environment, nearly anything is possible.
That said, the markets reluctance to break below 1100 leads us to believe that this rally might have one last push left in it. Our 1117 resistance in the September S&P futures held nicely, but we still think the mid 1120's are possible before sellers come back early next week. Similarly, our initial targets in the Russell and NASDQ are 675ish and 1930 respectively.
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track 'n Trade, Gecko software.
**Seasonality is already factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
[email protected]
1-866-790-TRADE
Local : 702-947-0701
http://www.DeCarleyTrading.com
http://www.ATradersFirstBookonCommodities.com
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
Join us for a FREE webinar hosted by PFG Best on July 29th at 3:30 pm Central to discuss "Futures Market Slang" : http://pfgbest.com/webinar/eventSummary.asp?skey=337713234
Light volume and options ex
According to our sources on the CME floor, the day started out with about 60 locals in the S&P pit and near the end of the day it was less than 30. Even later in the day they stated "The floor is clearing", so by the close there were likely even less. Aside from a few temporary spikes in volume, the action was nearly pathetic. Markets with few participants and scarce liquidity are dangerous for traders and should be avoided by the plague.
The June futures will trade overnight and settle tomorrow morning. If you are still holding June contracts you must get flat (or roll into September) before they settle. Quarterly settlement takes Friday's trade into account and involves an "ambiguous" formula that leaves your profits and losses at the mercy of math rather than trading skill.
We doubt that traders will come back to play before the weekend and expect tomorrows volume to be even less attractive than Thursday's. If you insist on trading, we recommend minimal position size and risk. In this type of environment, nearly anything is possible.
That said, the markets reluctance to break below 1100 leads us to believe that this rally might have one last push left in it. Our 1117 resistance in the September S&P futures held nicely, but we still think the mid 1120's are possible before sellers come back early next week. Similarly, our initial targets in the Russell and NASDQ are 675ish and 1930 respectively.
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track 'n Trade, Gecko software.
**Seasonality is already factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
[email protected]
1-866-790-TRADE
Local : 702-947-0701
http://www.DeCarleyTrading.com
http://www.ATradersFirstBookonCommodities.com
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
