This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Focal Points for the Trading Week Ahead

We are within three hours of the close of trading and it appears that the E-mini S&P 500 might eek out a slight gain for the first week of the October trade. This coming on the heels of what has otherwise been a week filled with a barrage of negative news, political bickering and postponed economic reports. Currently, at 1:15pm EST the December E-mini S&P 500 contract sits at 1682.50, up .75% on the day.

However, as we approach the close of trade on this relatively quiet Friday, our focus as a firm is beginning to shift to the week ahead. As it pertains to the broader market, and more specifically to the E-mini S&P 500 futures, we are using the following three areas of interest to guide our posturing ahead of next week's trade:

1. Government Shutdown and Debt Ceiling Discussion - While purely speculation of course, there seems to be rumblings through the markets today that some sort of progress will be made over the weekend as it relates to the budget impasse, which could result in a relief rally on Monday. While I tend to believe this is unlikely, I do not think that it is out of the question. With that said, we have been positioning ourselves to take advantage of what could be some volatile times in the week ahead.

2. Official Start of 3rd Quarter Earnings - All eyes will likely be on the financials as Wells Fargo (WFC) and JPMorgan Chase (JPM) are set to report on Friday, which could provide some clarity as to how other financials fared during a quarter where many fear that higher interest rates negatively impacted mortgage lending and trading revenue. Any sort of positive news from the banks could greatly benefit the S&P 500, as the financials have found themselves out of favor with investors since mid September.

3. Treasuries and Precious Metals - The 10-year Treasury remains on our radar as yields were up slightly today to 2.655%, with what appeared to be traders positioning themselves ahead of debt ceiling discussions that seem to be going nowhere. With the Fed taper discussion seemingly on the back burner until at least December, I'm interested to see the direction that yields take in the week ahead. With that said, both gold and silver were also leaned on heavily this week. A continuation of the shutdown for any length of time, and/or speculation of a delay to the fed taper plans could benefit the metals to the upside. Substantial inflows to the metals could indicate an ugly scenario on the horizon for equity indices.

While nothing that I mention above is certain, and is simply of my own opinion, I believe that it is prudent as a trader to start looking out one, two or five days ahead, to see what could potentially perk above the horizon and impact your trading plan. A failure to do so exemplifies complacency, which in our world equates to risk exposure.

Travis McGhee

CEO, FuturesANIMAL

At the time of publication, Travis McGhee held positions in SPY, SLV

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters