Pre-Bell Futures Day Trading Strategy - 8 Nov 2024
"Success in trading isn't about predicting every move—it's about mastering your mind, managing your risk, and learning from every trade. Approach each day with discipline, patience, and the willingness to adapt. Remember, the journey is as important as the destination."
1. YM (Dow Jones Mini Futures)
Current Price: 43929
Change: +19
Volume: 20,762
Market Overview: The YM contract shows a slight gain before the opening bell, with the Dow holding steady, likely indicating some resilience amid market volatility.
Technical Analysis: Immediate resistance is at 43,953, with support around 43,854. A breakout above 43,953 could trigger a bullish trend, while a fall below 43,854 might signal short opportunities.
Foundational Analysis: Current economic indicators and earnings season sentiment suggest cautious optimism. Look for news on tech and energy stocks, as they often sway the Dow.
Trend Identification: Sideways consolidation with a slight upward bias.
Trading Scenarios:
Bullish: Buy above 43,953 targeting 44,100.
Bearish: Short below 43,854, targeting 43,700.
Trade Rating: Medium likelihood, moderate volatility.
2. NQ (Nasdaq Mini Futures)
Current Price: 21164
Change: -60.75
Volume: 81,773
Market Overview: Nasdaq futures are down pre-market, with tech stocks likely to face pressure.
Technical Analysis: Resistance is at 21,263, with support at 21,122. A drop below support may lead to a significant downside.
Foundational Analysis: Tech-heavy Nasdaq might react sharply to earnings and rate-sensitive news. Watch for comments from Fed officials.
Trend Identification: Weakness indicated by lower highs in pre-market.
Trading Scenarios:
Bearish: Short below 21,122, aiming for 21,000.
Bullish: Buy above 21,263, targeting 21,350.
Trade Rating: High likelihood, high volatility.
3. ES (S&P 500 Mini Futures)
Current Price: 5998.5
Change: -5.25
Volume: 154,594
Market Overview: S&P futures exhibit mild declines, indicating possible cautious sentiment.
Technical Analysis: Resistance stands at 6,010, support at 5,990. A breakout above/below these levels could lead to significant moves.
Foundational Analysis: General risk sentiment impacts ES, given its broad exposure. Watch for earnings and economic data.
Trend Identification: Sideways with a slightly bearish bias.
Trading Scenarios:
Bearish: Short below 5,990, targeting 5,970.
Bullish: Buy above 6,010, aiming for 6,020.
Trade Rating: Medium likelihood, moderate volatility.
4. RTY (Russell 2000 Mini Futures)
Current Price: 2389.4
Change: -6.3
Volume: 18,668
Market Overview: Russell 2000 futures are weaker pre-market, showing risk aversion among small-cap stocks.
Technical Analysis: Resistance at 2,402.6 and support at 2,387.8.
Foundational Analysis: Watch for small-cap earnings as well as broader economic sentiment.
Trend Identification: Bearish, with consistent lower highs.
Trading Scenarios:
Bearish: Short below 2,387.8, targeting 2,380.
Bullish: Buy above 2,402.6, aiming for 2,415.
Trade Rating: High likelihood, high volatility.
5. GC (Gold Futures)
Current Price: 2705.4
Change: -0.4
Volume: 97,154
Market Overview: Gold is relatively stable, reflecting muted risk sentiment.
Technical Analysis: Key support is at 2,687.3, resistance at 2,717.8.
Foundational Analysis: Watch USD strength and any geopolitical news, as these can trigger volatility in gold.
Trend Identification: Sideways with a slight bullish bias.
Trading Scenarios:
Bullish: Buy above 2,717.8, targeting 2,725.
Bearish: Short below 2,687.3, aiming for 2,675.
Trade Rating: Moderate likelihood, moderate volatility.
6. CL (Crude Oil Futures)
Current Price: 71.37
Change: -0.98
Volume: 84,378
Market Overview: Crude is down, likely due to demand concerns or inventory data.
Technical Analysis: Support at 70.94 and resistance at 72.25.
Foundational Analysis: Look out for OPEC-related headlines or any economic data influencing oil demand.
Trend Identification: Bearish with pressure around recent lows.
Trading Scenarios:
Bearish: Short below 70.94, targeting 70.5.
Bullish: Buy above 72.25, targeting 72.75.
Trade Rating: High likelihood, high volatility.
7. ZTN (10-Year Treasury Note Futures)
Current Price: 110.25
Change: +0.0625
Volume: 696,072
Market Overview: Slight uptick in 10-Year Note, reflecting a potential flight to safety.
Technical Analysis: Resistance at 110.516, support at 110.109.
Foundational Analysis: Rate-sensitive; any Fed commentary could cause moves.
Trend Identification: Upward bias.
Trading Scenarios:
Bullish: Buy above 110.516, targeting 110.7.
Bearish: Short below 110.109, aiming for 110.
Trade Rating: Medium likelihood, low volatility.
8. ZTB (30-Year Treasury Bond Futures)
Current Price: 117.4375
Change: +0.34375
Volume: 134,148
Market Overview: The 30-Year Bond is showing gains, signaling demand for long-term safety.
Technical Analysis: Resistance is around 117.75, support at 116.938.
Foundational Analysis: Sensitivity to interest rate sentiment; watch for Fed-related news.
Trend Identification: Bullish with consistent higher lows.
Trading Scenarios:
Bullish: Buy above 117.75, aiming for 118.
Bearish: Short below 116.938, targeting 116.7.
Trade Rating: High likelihood, low volatility.
Volatility Insight: VIX (Volatility Index)
Current Price: 14.94
Change: -0.26
The VIX is slightly lower, suggesting a decrease in fear among investors. This can lead to steadier, less volatile markets today but could also mean any unexpected negative news could have a larger-than-usual impact due to complacency.
Conclusion: Today’s trading environment presents a balanced setup, with technical levels on each futures contract providing actionable entry and exit points. With slight weakness in equities and strength in Treasuries, consider a cautious approach, balancing both sides of the trade. Stay updated on breaking economic news, as it can shift these scenarios swiftly.
Day Trading Strategy Disclaimer
ALWAYS DO YOUR OWN ANALYSIS. NO ONE CAN PREDICT THE STOCK MARKET, BUT YOU CAN MAKE INFORMED DECISIONS TO INCREASE YOUR CHANCES. IN DAY TRADING: MINDSET AND ATTITUDE BEATS SKILL. CHOOSE THE SCENARIO THAT MEETS YOUR RISK AND STRATEGY AND SECURE THE WIN. NOT EVERYDAY IS A TRADING DAY AND ALWAYS LIVE TO TRADE ANOTHER DAY
The content provided in this blog, including day trading strategies, technical analysis, and market insights, is for informational and educational purposes only. The information should not be construed as financial advice, investment recommendations, or an endorsement of any trading strategy. Trading futures, options, and other financial instruments carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results.
You should thoroughly evaluate your financial situation and risk tolerance before engaging in any trading activities. It is advised that you consult with a licensed financial advisor or professional who can provide personalized investment advice tailored to your individual needs.
The author and publisher of this blog do not guarantee the accuracy, completeness, or timeliness of the information and will not be liable for any losses or damages, including, but not limited to, any loss of profit or investment, which may arise directly or indirectly from the use of or reliance on such information. By using this blog, you acknowledge and accept these terms and any inherent risks associated with trading.
Risk Warning: Leveraged trading can result in losses that exceed your initial investment. Please trade responsibly.
