S&P500 Futures May Slide Down To Fibonacci Retracement Levels

Feb. 23, 2012 7:15 AM ETSPXU, SDS
ozgur profile picture
ozgur's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Contributor Since 2010

Ozgur is an investment advisor specialising forex, futures, and futures options. He works for Is Investment, the largest local brokerage house in Turkey. He also has relatively small exposure to Turkish stocks with his clients' accounts. He prefers to take advantage of hedging or cost reduction alternatives by using options strategies.

Stock indices have been appreciating since the beginning of the year, on the contrary to most expectations which were saying first half of the year will be sideways or bear market, and the second half will be for the bulls.

The ECB is likely to pump money to the market by the end of this month, and I believe the market will prefer to take this as a reason to buy. But; ahead of that, my charts are telling me that S&P futures will slide down to 1292 first, then possibly to 1250 area.

Although the pattern below lacks 100% symmetry, I think it'll work and provide a sweet profit to sellers with low risk. Here is the model; sell multiple contracts of ESH2 just below 1360, place stops around 1372, and limit orders for half the positons around 1290. Take profit point for the rest of the positions could be 1248 area. Once 1290 is achieved, then move stops for the remaining half down to B/E.

Maximum loss for 2 contracts will be $1200; while max profit will be $9100; commisions not included.

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.