Wednesday, October 13, 2010

Swing Position Initiated

As posted in Twitter the New Swing position was executed today in the E-Mini S&P Futures ESZ10
December Contract.

Exclusive Subscribers received the entry notice one hour before. The stop loss was only one point for the second Entry.

Entry SETUP/Analysis available upon request.

SHORT : 1180.25 Target : To be Determined based on market action.

Volume output on the S&P 500 was up sharply from yesterday's anemic levels - some 3.6 billion shares were traded on the index today.

After a poor start, US equities rose to flat (the Dow) to positive closes following the release of the Fed meeting notes. The underlying tone was that the minutes from the Federal Reserve's September 21 meeting would keep investors' hopes alive that the central bank would follow through with another round of quantitative easing ('QE2'), as discussed here a number of times. The Fed's next meeting is scheduled for early November.

The Fed minutes suggest that Fed members are concerned not that inflation is too high - as often feared - but in the current economic climate that it might actually be too low. The minutes seem to suggest that the Fed will take action to stimulate the US economy 'before long.' Specifically, the minutes indicated a majority of FOMC members are indeed willing to 'provide additional monetary policy accommodation'; however, the door was left open, as the Fed also included the following qualifying statement: '... saw merit in accumulating further information before reaching a decision about providing additional monetary stimulus.'.

Technology issues outperformed today, with Intel rising ahead of its earnings release after the bell today (here the company beat analyst estimates regarding earnings per share and total revenue for Q3); Apple rose to almost $300 per share after the company announced that Wal-Mart will start selling its new flagship product, the iPad. Q3 earnings season will kick into high gear this week.

In M&A activity, Pfizer announced it would acquire drugmaker King Pharmaceuticals for $3.6 billion in cash.


  1. How do you become an 'exclusive' subscriber?

  2. Great use of support and resistance levels to gauge a high probability entry.