Hello everybody,
There wasn't much of a do yesterday in the markets, it was a quiet day trading. We seem to be stuck with a short position for now. While this is the case, it may be in order to begin to get used to the idea of rolling over to the next front month in futures, which is March of 2020. ELP's rule for rolling over is to do it on the second Thursday or Friday of the expiring month, which is December. This is exactly one week before trading will be shut for the expiring contract.
If we remain in the short position till then, all you need to do is buy one ESZ9 contract, thereby closing out the current short position, and immediately, or preferably simultaneously, sell one ESH0 contract, thus opening a short position in March E-mini S&P500 futures. If you are short MES futures, do the same thing with those futures.
I will remind you about the rollover in good time.
For now, we are short 1 ES and 3 MES on a starting capital of $100,000 (CME Simulated Trading platform). I happen to be a stickler to rules, and I am out there on the Simulated Trading platform to prove the validity of ELP, so I remain in this position as there is no signal to the contrary. But remember, we sold 3 MES contracts to enhance ELP's position in ES, as there was an extra amount of capital. These last two days, the gap formed on Nov.15 was closed, and given this political and economic environment, stocks might go up again. So you could close the MES (in case you are emulating me) with a small profit and sell again higher, or if the index goes lower, remain with a legit short position in ES at any rate.
And who knows - maybe there will be a signal to go long yet.
See more info on ELP Program for S&P500 trading on my website sp500systems.com.
Cheers,
Vlad
There wasn't much of a do yesterday in the markets, it was a quiet day trading. We seem to be stuck with a short position for now. While this is the case, it may be in order to begin to get used to the idea of rolling over to the next front month in futures, which is March of 2020. ELP's rule for rolling over is to do it on the second Thursday or Friday of the expiring month, which is December. This is exactly one week before trading will be shut for the expiring contract.
If we remain in the short position till then, all you need to do is buy one ESZ9 contract, thereby closing out the current short position, and immediately, or preferably simultaneously, sell one ESH0 contract, thus opening a short position in March E-mini S&P500 futures. If you are short MES futures, do the same thing with those futures.
I will remind you about the rollover in good time.
For now, we are short 1 ES and 3 MES on a starting capital of $100,000 (CME Simulated Trading platform). I happen to be a stickler to rules, and I am out there on the Simulated Trading platform to prove the validity of ELP, so I remain in this position as there is no signal to the contrary. But remember, we sold 3 MES contracts to enhance ELP's position in ES, as there was an extra amount of capital. These last two days, the gap formed on Nov.15 was closed, and given this political and economic environment, stocks might go up again. So you could close the MES (in case you are emulating me) with a small profit and sell again higher, or if the index goes lower, remain with a legit short position in ES at any rate.
And who knows - maybe there will be a signal to go long yet.
See more info on ELP Program for S&P500 trading on my website sp500systems.com.
Cheers,
Vlad
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