Be advised that all my comments are my OPINION and that OPINION is based on my long term in-house model that I dubbed LAWG 647. The prices I use in my model are week ending prices, usually Friday. BTW, trading commodities is risky and not meant for those that faint at the sight of blood.
IS THE E-MINI S&P HEADING FOR BEARISH TREND REVERSAL?
September 24, 2020
Let us get to it and make it short and sweet. What does the LAWG647 Model tell us about the December E-Mini S&P?
We know that by definition as of last Friday’s close the December E-mini S&P remained in a precarious uptrend. We know that it has been in an uptrend since week ending the 29th of May. We know that both the Positive and Negative Indicators are within the first Standard Deviation of the long term average, this means that neither are over stretched. As of this writing we see the December E-Mini S&P trading at 3200. We know that if it closes this Friday at or below 3193.25 the trend goes bearish. The prices listed below are the critical Friday closes I will be watching.
September 25 3193.25
October 2 3193.25
October 9 3253.00
October 16 3354.50
What to do? With that in mind watch how the December S&P performs at the 100 day moving average 3184. As I mentioned in previous articles it is my opinion based on years of observation should a commodity come extremely close to trend a reversal and fail there is a likelihood (not a guarantee) that the present trend becomes re-energized. I would be inclined to buy the December S&P between 3200 and 3185 and exit trade IF it appears that the December S&P will close at or below 3193.25.
Lee Gaus is a founding partner of EFG Group founded in 1992 which specializes in servicing Introducing Brokers.Prior to founding EFG Group Lee Gaus, Tom Fritz and Steve Erdman all began their Commodity Futures careers with ADM. Collectively Lee, Tom and Steve have over one hundred years of experience in the industry.
International Futures Group (IFG) founded in 1994 is a sister company to EFG Group specializes in serving institutions, professional traders and individual investors.
We believe our experience and the development of the Model provide our clients, Introducing Brokers and individual clients a unique perspective. If commodity trading is what you do drop me a line at [email protected]or give me a call at 312-384-1166, or 1-877-304-1369. We will be glad you called and are confident so will you.
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.