ES hit 7 pt profit target - 907.50 to 900.50

Bearish reading in first 30 minutes today

Even though we are near important options expiration support in the S&P500 at 90.00 -

There is a very negative setup occuring here this morning where we should be selling any rallies of 50 Dow Points or 5 ES points. 902.5 is the low for ES, so enter short at 907.50.

Lower stop after 30 minutes to entry/breakeven -

Target 7 pt profit.

10:12AM

Buy Signal: Short term Only 1:52PM

ESU9 908.25 Low, 911.50 last, 914 target.

Buy 911 or better with a 908.50 stop.

Reverse and go short at 907 if stopped out.

Use a 911 stop once short.

The setup here is high put buying, short term which could set up a short-covering rally.

The background is that options expiration is this Friday and 900 is a level that will likely attract the market.

910.75 last
1:53PM

Awaiting a signal -

Awaiting more extreme readings in the indicators I am tracking in order to make a market call -

At 10:05AM 930.50 last, "Heavy Put Buying" strategy

Overnight high is 939.75, current low is 928.00.

We are sitting at 930.50.

Since we are turning up and holding above the lows here, I suggest going with a "long position", but reverse and go short on a new low, risk no more than 3 pts in each case.

If the put-buyers are front-running their own sales, then we'll move aggressively lower today.

If we do get short on a new low under 928, then after 30 minutes, lower stop to breakeven.

Tim

BUY DIPS of 5 pts OFF OF HIGHS

946 recent high at 12:55PM

941-940-939 are decent entry prices for longs -

I view 948 as a great exit for any longs.

Risk 3 pts from entry. 938 stop. 948 target.

@ 941, risk is 3 pts, upside 7 pts (3:7)
@ 940, risk is 2 pts, upside is 8 pts (1:4)
@ 939, risk is 1 pt, upside is 9 pts (1:9)

I recommend 1 of each, if you can afford the loss.

The environment is BULLISH here - indeed -

945.25 last 1:01PM

Long Entry - 937 or better - ESM9

First 30-45 minutes is again nervous "call selling" on the price decline - I saw and called out an entry at 936 on the ESM9 and think 5 points is possible from this oversold level, risk was 4 pts, now raise stop to 936 - (trading 939.50 as I type) - target is 941 on this oversold bounce -

There is a good chance we will see an extra-ordinary powerful signal today that is worth 10-15 handles in the S&P - so be ready for that signal - be on alert -

For now, trade oversold from the long side and exit on strength -

Friday, June 5, 10:26AM