Monday, April 11, 2011

Friday -Outside Bearish Day -Today is day # 2

Tuesday - April 12 :
 Day # 3 - BUY on the close
Long from 1308.25
Position liquidated during Globex session.
New Long position : 1300
Setup : High Volume Reversal after reaction to Thursday April 14 Econ Report followed by retest of Low on low Volume making a double bottom
this is a High Probability Reliable Trade.

Back to the markets after some scuba diving adventure travel. Blue days and beach time is back, time to head for the beach...the ocean is calling...

First let's look at the market and push the ATM machine to the limits.

Market Outlook

The economic recovery is so sluggish that the Federal Reserve needs to keep easy money policies in place while the government comes to grip with its debts, the International Monetary Fund said on Monday.

The U.S. futures regulator is scheduled to unveil a proposal on margin requirements for swap dealers and major swap participants under the Dodd-Frank financial reform law that Congress passed in the wake of the financial crisis.

The growth outlook for major industrialized economies is improving with Germany and the United States leading the recovery, the OECD's leading indicator for February showed on Monday.

The world's largest bond fund began betting against the United States last month by taking short positions on its debt on expectations the nation's shaky finances will drive interest rates higher and imperil its triple-A rating... U.S. deficit spending could result in higher inflation and a weaker dollar... lack of buyers for Treasuries once the Federal Reserve ends its own bond purchase program, also known as quantitative easing, in June...

The IMF sees new risks to the global economy from a rise in the price of oil and other raw materials, a senior German official said on Monday.

The Federal Reserve shouldn't be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy, a top central bank official said on Monday.

My prediction for this correction is that the ES will find support between 1311.50 and 1310.50
and no later than on Day # 3 it will resume the up trend. Those that follow this method on this Blog should know what the day # 3 is, if not please read the blog on previous postings.
New position : LONG from 1311.50 E-Mini S%P500 Futures- June ( ES )
Position closed and another new Long position at 1308.25 is open.
Setup : read the previous posts to find the methodology.

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