Tag Archives: $MC_F

PB FUT

Trade Plan and Analysis for the E-Mini S&P 400

The E-Mini S&P 400 has rallied nearly 50 points since the impressive reversal near 950 early last week, which has led to great “buy the dip” opportunities. Here’s how I see tomorrow’s market playing out, along with my trading plan..

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Golden Pivot Zone

The 5-minute chart of the E-Mini S&P 400 futures contract shows a Higher Value relationship has formed using the pivot range. This relationship is the most bullish relationship, and usually indicates that any morning weakness into the range will be seen as a buying opportunity by responsive buyers.

However, what makes this Higher Value relationship more powerful than normal is the fact that it also contains the L3 pivot from the Camarilla Equation, which is typically seen as the “buy” pivot. When a Camarilla pivot lies within the pivot range, a major source of support is present, which I affectionately call the Golden Pivot Zone (GPZ).

The GPZ offers a super strong “zone” of support. A GPZ is a great source of support for various reasons, the first of which is the fact that the zone was identified as support using two different pivot-based formulas, thereby introducing true confluence.

Also, the call-to-action to buy at the support zone is greater, since traders of Floor Pivots and traders of the Camarilla Equation will essentially “double” the buying interest at that zone of support.

The Trade Plan

Given the recent run of strength and the Higher Value setup, I’ll be looking to “buy the dip” in the MCM2 tomorrow, so long as price opens above 995. If price opens above 995, I’ll be looking to buy into morning weakness between 993 and 994.5.

E-Mini S&P 400 ($MC_F)

The fact that the MC has a current 10-day Average Daily Range (ADR) of 14 points means that I’ll be looking to trade to a target of between 1,003.5 and 1,005, depending on where the morning low is located, essentially using 75% of the ADR. Obviously, I’ll update this soft target tomorrow morning after I see where the market printed the overnight high and low.

If price opens the session below 993, all bullish bets are off. If this occurs, I’ll look to shift my entry to the short side, with entries set to between 994.5 and 996, and a potential target somewhere in the 986.5 to 988 zone.

Let’s see how this one plays out!

Cheers!

Frank Ochoa
PivotBoss | Own the Market

Follow Frank on Twitter: http://twitter.com/PivotBoss

Watch for a Breakout in this E-Mini Tomorrow

The E-Mini S&P 400 futures contract took a break from Friday’s trading to relax ahead of tomorrow’s big breakout session. Here are the levels you need to watch..

“Tight” Range

You know the market is enduring an incredibly volatile period when a 16-point range in the E-Mini S&P 400 (MCU1) is considered a “tight” range, but that’s exactly what’s happened.

After experiencing extreme daily price swings over the last two weeks, the MC traded virutally flat Friday, creating a 16-point consolidation range, which could lead to a major breakout opportuntiy tomorrow.

Narrow Value Relationship

The 5-minute chart shows the Developing Value Area indicator is going to be narrow for tomorrow’s session, which is usually indicative of a potential breakout opportunity ahead.

E-Mini S&P 400 ($MC_F)

This type of relationship can usually forecast a breakout/trending day, which means we could see the type of day that occurred last Thursday – a day that had a price range of 51.5 points! That’s huge!

I’m not saying we’ll move another 50 points tomorrow, but we could easily move double digits.

Levels to Watch

Keep an eye on Friday’s price range for a breakout opportunity tomorrow: 850 up and 832.50 down.

A downside push through the bottom of the range could yeild a target of about 815, with the potential to move to 800. If you want an earlier short entry, keep an eye on 837.

Should an upside break occur through 850, watch 860 as a first level target, with the potential to move as high as the Quarterly VWAP level of 900.

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So what are you waiting for?

Let’s see how tomorrow plays out!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss

Watch This E-Mini Closely Today

The E-Mini S&P 400 futures contract has been trading within clear patterns of expansion and contraction lately, revolving between the two day after day in the last week of trading. The current pattern indicates we could see a major breakout opportunity to begin the day. Here’s why..

Inside Value Relationship

The E-Mini S&P 400 (MCH1) has developed an Inside Value relationship, as seen in the 15-minute chart below. This relationship occurs when the upcoming day’s value area forms inside the prior day’s value area, which indicates price is coiling ahead of a potential breakout move.

The MC has clearly formed this pattern, thereby indicating there could be fireworks to begin today’s session.

E-Mini S&P 400 (MCH1)

If price opens the day with an initiative spark, we could see a breakout/trending market the first two hours of the day, and potentially longer.

Look for price to either gap beyond yesterday’s price range, or for price to break through yesterday’s price range early in the session. A violation of this nature will indicate a push in the direction of the break, which could be quite fruitful.

The last time this relationship formed was four sessions ago (Feb 25)…and the MC rallied 16 points on the day – that’s $1,600 per contract traded. Not a bad!

Let’s see if we can get the same type of spark today!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss

Major Breakout for the S&P 400?

The S&P MidCap 400 Index ($MID) has traded within a relatively quiet range throughout the month of November – but this range could spark the next major breakout opportunity! Read More..

Ascending Triangle

The 60-minute chart shows the $MID has developed a clear ascending triangle pattern over the last four weeks of trading. The back end of the pattern spans about 35 points, which means an eventual breakout could spark the next 35-point move in this index!

Ascending patterns tend to break to the upside, so this pattern paints a bullish picture for this index. A breakout through the top of the pattern at 865 forecasts a target of 900, which could be a very profitable move for those trading the EMD futures contract.

S&P 400 ($MID)

Since this triangle could break in either direction, keep an eye on 847 down, and 865 up. Eventually, a breakout could ignite a major move in the direction of the break – so watch this pattern closely.

Let’s see how this pattern plays out!

Cheers!

Frank Ochoa
PivotBoss.com

Follow Frank on Twitter: http://twitter.com/PivotBoss