New Buy Signal at 10:30AM is an hour old - but still valid

Strong indications of fear suggest a tradable bottom for today:

BUY

Risk 5 pts (reverse and go short if stopped out)

Target 7 pts.

Raise stop to breakeven after 1 hour.

932 last.

Buying opportunity - Risk 5 pts - target 7 pts

ESM9

Strong call selling is indicative of a "wall of worry".

Buy this dip from 949 to 944.

Risk 5 pts from entry.

Raise stop to breakeven after 30 minutes.

Comments on Yesterday's Action

Monday, June 1, 2009 -
I witnessed the first bearish activity in the market rally so far -
I will see how this translates into market action today -
Call buying on the price rally is a sign, short term, that we could see a reversal to the downside.
9:28AM
Tim West

Entry Here:

Long 904 is 9.25 pts off the high - close to the 10 pts theorized -

Now 905.50 -

Upside is 5 pts or 909, stop is 901.

Raise stop to breakeven after 15 minutes.

Exit after 30 minutes.

11:34AM

NEUTRAL MARKET CONDITION: FRIDAY 11:09AM

No trades yesterday setup.

Today I see that conditions are ripe for continued sideways action - the cross currents are in place to keep the market oscillating in a range and right now I see 10 pt rallies in ES as a short sale and 10 pt declines as a buy, each risking 5 pts and targeting 5 pts.

There are bearish and bullish factors that may very well keep us contained the rest of the day -
bond market rebounding on weak PMI data and deflation concerns and deeply oversold technical condition of the bond market is a bearish factor. The rising YEN is a bearish factor and the bearishness expressed in the options market is a bullish factor as I see it.

902.25 LOW in ESM9 since 9:30AM-
913.50 HIGH
906.50 last, +1.00 on the day.

I'll update parameters when I see a specific entry price.

11:15aM

Last Buy Signal Stopped Out at Breakeven 907

898.25 last.

I'm seeing a 913 to 896 correction in the ESM9 futures -

but I am not seeing a setup to give us a low-risk trade that I am familiar with.

It is tempting to buy just because the price is down and we are falling into what could be support zones - but I am not seeing what I often see at inraday market bottoms -

900.25 last...

More bullish environment now at 11:45AM

The market environment is more constructive than at 11:00AM as more pessimism has crept into the market as prices are holding - this sets up a bigger profit target and now a higher stop loss.

Raise the stop from 905 to 907 and raise the upside target to 915 from 912.

910.50 last