ESH10 – E-Mini S&P (Last:1150.50)

Let’s plan on shorting 1159.25 with a two-point stop-loss. I don’t usually favor patterns so very elongated as the one shown in the chart, but the two rally legs are sufficiently similar in appearance to beckon a modest, $100 speculation.  This being a Friday, and Mr Market being, always, a sonofabitch, we might expect the target to be hit in the final 90 seconds of the session.  My advice is to take the trade anyway, provided you are able to monitor it, and to use the stop-loss, when index futures resume trading Sunday evening. _______ UPDATE (10:14 a.m. EST):  The futures collapsed after spiking to 1159.50 on retail sales news.  Our short offer could not have been more perfectly positioned, and in the chat room I advised taking profits on half the position with the futures trading about 12 points lower.  Use an 1153.75 stop-loss until 1144.00 is reached, then switch to a 5-point trailing stop for half of what remains.  For grand-slam potential, you should keep a vestigial piece of the original position with a stop-loss above 1159.75.  Officially, we’ll retain a single contract on those terms.

Tagged as: E-Mini S&P, ESH10, Forecast