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YMH2, 4.25% Stretch reversal, 5 Jan 2012


Hi,
5 January: YMH2 (March $5 Dow futures) declined 143 points from the A session high, 12362, and then reversed up 154 points from the low, 12219, to the high, 12373. 136 points is 4.25% of today's Stretch. 12362 - 4.25% Stretch = 12362 - 12226 (12219 = low, i.e,. a reversal within 7 points from the low.). The price rally from the low, 12219 to the high, 12373, (154 points) also produced a price move greater than 136, i.e., 4.25% of the Stretch. $5 Dow futures have tended to repeat daily trading ranges, either directly or inversely price action near to 4.25% of the respective day's Stretch calculation. The two 136 point price moves printed 272 points, i.e., $1360 per contract. Intra-day margin for the March e-mini $5 Dow futures is $500.
Namaste