Hello All,
A hefty rally in stocks, a 4% spike in oil prices, and the largest one day rally for the Euro in the last 4 months. Although impressive, the risk reward neither favors selling resistance or buying the strength. The trends should continue through the later part of trading tomorrow with the S&P probably peaking at a max of 1106, Crude peaking between a max of 78.30-78.50, and the Euro at 1.3840. We will try to do countertrend sales once we reach those levels, and hopefully the market will have lost enough steam as for us to not get run over. Slightly taking out all the previous highs and retracing could begin a congestive pattern for the next week or two prior to breaking out to the upside. Chinese new year will imit speculation and volume.
1) Sell Mar. Emini S&P at 1104.25, with a 1111.50 stop. Exit 1083.00.
2) Sell Mar. Crude Oil at 78.27, with a 79.11 stop. Exit 75.28. Tomorrows crude oil inventory report will be released on Thursday due to the Monday holiday.
3) Sell Mar. Euro at 1.3837, with a 1.3912 stop. Exit 1.3686.
All 3 trades are similar with respect to the 62% retracement level as resistance and 38% exit target.
Best,
Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
www.ExpoFutures.com
*There is a risk of loss trading futures. Past performance is not indicative of future results.
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