The DJIA Hits 23,000-Get Ready To Trade!

It has been a big year for U.S. equities, there is no question about that. Whether it is the result of a weakened dollar or the “Trump Effect,” remains to be seen. However, there is no denying that both the DJIA and S&P 500 are roaring at an unprecedented clip.

Earlier today, the DJIA made another all-time high of 23,000. If you have been following my posts over the past three months or so, it is no secret that I am a fan of “big round numbers,” also known as “key psyche levels.” They have an uncanny way of being significant and bringing participation to the table.

23,000 being hit is a big deal. It represents the sixth time over the course of the past twelve months that an even 1,000 point benchmark has been eclipsed.

E-mini S&P 500 Futures

In the U.S. market, the E-mini S&P futures contract is the premier method of trading derivative products based on U.S. equities. CFD trading is not permitted in the States, thus the popularity of E-mini futures.

December E-Mini S&P Futures, Daily Chart

It is important to remember that the S&P 500 CFD markets follow a majority of the same fundamentals as the E-mini S&Ps. The exact pricing will vary, but retracement levels and chart patterns are very similar.

Here are a few trades for the December E-mini S&P 500 futures:

• Position long from the 38% retracement on the daily chart, 2530.00. 1:2 R/R, with the initial stop below the Bollinger MP at 2523.75.

• Breakout long from Monday’s high of 2558.00. 1:1 R/R with the initial stop below the current intraday low.

Bottom Line: The position long trade is valid until the Monday’s high is taken out. With a bit of luck, this trade will develop in the coming sessions.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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