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S&P 500 Trading Plan: Sept. 27, 2017

Shain Vernier•Wednesday, September 27, 2017•1 min read

December E-mini S&P 500 futures are on a bullish tear. Approaching yet another all-time high, investors are loving U.S. equities. It looks as though the run to safe-havens is over and risk-on is back in vogue.

From an intraday trading standpoint, there is no reason to reinvent the wheel. Buying pullbacks in E-mini S&P futures is the plan for the intraday session.

 

Trading The S&P 500

There are several unique ways in which to trade the S&P 500. One can buy the index directly, play the related CFD products or trade the front month E-mini S&P 500 futures contract. No matter which product is being engaged, a sound strategy employing Fibonacci retracement levels can bring long-term profitability.

 

S&P 500December E-mini S&P 500 Futures, Daily Chart.

 

Today’s trading plan facing the December E-mini S&P 500 futures contract is straightforward:

  • Take long entries from the 38% retracement level of the intraday range. To clarify, that is from the current intraday low to the current high. It is important to realize that these numbers update constantly. Be sure to stay on top of all developments.

  • Stop losses below the 50% or 62% retracements give solid stop outs. The optimal stop out level will depend upon market conditions and the size of the range.

  • Preservation of an adequate reward/risk ratio is a must. If you are not familiar with the ins and outs of risk management, be sure to check out our tutorials here at FX Leaders.

Bottom Line: The S&P 500 is a hot market right now. Pending data releases will drive participation and may bring this trading plan into play. Patience is the key to all successful trading.

As always, it is imperative to trade smart and stay patient!

 
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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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