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Today’s Best S&P Futures Turning Points: Buy 5215.25 stop 5210.25. Short 5296.25 stop 5300.75.
Thursday’s results: Shorting 5254.25 picked the high of the session and ran for 12 points to the close (more for Swing traders).
The World Index: (+100/-100) improves from -29 to +7 with Asia Bearish and the west Bullish.
Catalysts: Earnings season kicks off with the major U.S. banks premarket. Import/Export Prices @ 8:30. Fed’s Collins @ 9:00. UofM Consumer Sentiment & Inflation Outlook (preliminary) @ 10:00. Fed’s Schmid @ 13:00, Bostic @ 14:30, Daly @ 15:30.
Quick Tip: Swinging Futures
One of the many benefits of day-trading futures over stocks is the capital requirement. With stocks you must maintain a minimum of $25,000 in your account for pattern day trader status giving you 4X leverage.
There is no minimum in the futures market. In fact, the capital requirement could be considered the opposite! Most brokers will offer reduced margin rates during the day session for many of the futures contracts. For example, at TradeStation the overnight margin required to trade 1 E-Mini S&P contract is currently $12,980, but the day rate is only $1,298!
Looking at the chart above you’ll see the suggested short kept getting better after the day session close. If you had the capital in your account you wouldn’t need to close the trade. You could mentally “convert” it to a swing trade and stay the course.
If you don’t have the capital for overnight margin you could reduce your size or close the E-Mini trade and open an E-Micro trade.
Brokerage rules may vary so check with yours, but at TradeStation the overnight margin requirement kicks in at 4 PM ET, not 4:15 when the contract stops trading.
The futures will re-open at 6 PM ET so the possibility of a gap against your position is rare. The days to be careful though are during earnings season when key companies report after the close (AAPL, NVDA, META, etc.).
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Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
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