E-Mini S&P 500 Day Trading Futures Using RSKsys Reading the PREM Oct 22 2009

Reading the PREM Really Works
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RSKsys Intl is committed to the ongoing development of consistently profitable Emini trading systems and strategies for the S&P Futures commonly called the Spoos. Our accomplishments thus far have been nothing short of remarkable. This site will give you a glimpse into one of the most robust S&P trading systems to be found anywhere at any price.

Our E-Mini S&P 500 Day Trading Futures Strategy and Video Training Course addresses more than just price action and volume. We track the ES with as much as 6 different studies including the MACD, Detrended Price Oscillator (DPO), Adaptive Price Zone (APZ), Bollinger Bands, %R and Linear Regression.

Our proprietary method for calculating the MACD trend allows us pinpoint accuracy on trend changes even on Tick Bar Intervals as much as 440,000 tick bars. We can identify on a 25 Tick Bar chart the moment trend changes happen allowing us the ability to enter trades with as little as a .75 stop.




We teach our traders how to identify divergence on market internals including the Advance Decline of the S&P 500 ($ADSPD), divergence on the Trin, Vix as well as $Tick. By keeping a close eye on the premium (PREM) we are able to identify when institutional trading may change market direction as well as how program trading may affect the market. Our traders learn how to identify the pattern of the day and know when to anticipate the best market exits, while using our Group Reversal system to enter trades and maximize them. We keep track of all gaps in all market indicators and use them as a basis for understand where major pivots in the market may take place. Trading with our group reversal system takes significant guesswork out of trade decisions.


HOW TO READ THE PREM

Rule # 1:
Look at the correct part of the bar. Use a 1 minute chart. The high of the S&P 500 FUTURES (spoos) corresponds to the high of the prem. The low of the spoos corresponds to the low of the prem.

Rule #2:
When ever there is a new high for the day on the prem, it means one of two things. Either the prem is going higher or the spoos are going higher or both. When ever there is a new low on the prem, either the prem is going lower or the spoos are going lower or both.

This may seem ambiguous, but its just a fact of observation. Consider these scenarios:

•The prem hits a new high. Read the high of the spoos. If the spoos did not go any higher before they continued to short, a price point was created. When the spoos turn up, they will likely rally right back to the price associated with the last new high on the prem and likely go higher.
•The prem hits a new low. Read the low of the spoos. If the spoos went no lower before they began to rally, a price point was created. If the spoos turn and rally up a bit, likely they will short again and return right back to the price associated with the last new low on the prem and probably go lower.
•The spoos hit a new low. The prem hits a new high (rare). The sell off is very likely over.
•The spoos hit a new high. The prem hits a new low (rare). The rally will likely stop like it hit a brick wall, reverse and begin to short.

Rule #3:
New highs or lows on the spoos should be preceded by new highs or lows on the prem. If they are not, the market is poised to turn.

Reading the PREM is not a strategy per se. It is a leading indicator and can regularly predict where the spoos are going to go before they get there, especially when the spoos appear to be doing just the opposite. New highs and lows on the prem are by themselves fairly decent indications of large institutional program trading going on, without necessarily knowing predetermined buy sell execution levels. If the program trading is going on you best be sure not to trade in the opposition direction. Our trading strategy takes these and other factors in to account thus producing very accurate and timely trades. We invite you to consider our results and training course to help you become a more effective trader.

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