Hello All,
I'm glad we didn't place any trades today as their wasn't much going on, we would have been sitting ducks. The markets were little changed with a stable dollar after government reports showed that the trade deficit narrowed, indicating a slowing economic recovery. We've been covering the same ground for the past 3 days and we're close to topping. The FOMC minutes may be the catalyst to push these markets lower, so there is still the possibility of making new highs into Sunday/Monday.
1) June Emini S&P probably will be stagnant in the 1140-1150 region. Not worth trading tomorrow, but if you must you should be trading from the longside just in case the market takes off to end the week at a new high.
2) Buy June Euro at 1.3670, with a 1.3604 stop. Exit 1.3782. The march currency contracts are expiring on Monday and major rollover took place today with a huge spike in volume. The market has put in a bowl type of bottom and we'll have to see how she reacts to resistance at 1.38 going into the FOMC meeting. But I suspect the announcement will be bullish for the dollar and inversely send all related markets lower after Tuesday.
3) Sell April Crude on a stop at 81.12, with a 82.45 protective stop. The market has respected the uptrend channel since the beginning of Feb. and as soon as we breach it look out below. We've been in a congestion pattern which should come to a climax tomorrow. If we break above 83 then we may very well see the 85 region for a double top before we descend back below 75. If we cannot get a rally above 83 by Sunday then the market should be heading straight for 77, then a minor bounce to 81, before ultimately heading towards 70-72. Along with the FOMC meeting on Tuesday, we have crude option expiration on Wednesday along with another inventory report, so it will be interesting to see how they end this week.
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.
I'm glad we didn't place any trades today as their wasn't much going on, we would have been sitting ducks. The markets were little changed with a stable dollar after government reports showed that the trade deficit narrowed, indicating a slowing economic recovery. We've been covering the same ground for the past 3 days and we're close to topping. The FOMC minutes may be the catalyst to push these markets lower, so there is still the possibility of making new highs into Sunday/Monday.
1) June Emini S&P probably will be stagnant in the 1140-1150 region. Not worth trading tomorrow, but if you must you should be trading from the longside just in case the market takes off to end the week at a new high.
2) Buy June Euro at 1.3670, with a 1.3604 stop. Exit 1.3782. The march currency contracts are expiring on Monday and major rollover took place today with a huge spike in volume. The market has put in a bowl type of bottom and we'll have to see how she reacts to resistance at 1.38 going into the FOMC meeting. But I suspect the announcement will be bullish for the dollar and inversely send all related markets lower after Tuesday.
3) Sell April Crude on a stop at 81.12, with a 82.45 protective stop. The market has respected the uptrend channel since the beginning of Feb. and as soon as we breach it look out below. We've been in a congestion pattern which should come to a climax tomorrow. If we break above 83 then we may very well see the 85 region for a double top before we descend back below 75. If we cannot get a rally above 83 by Sunday then the market should be heading straight for 77, then a minor bounce to 81, before ultimately heading towards 70-72. Along with the FOMC meeting on Tuesday, we have crude option expiration on Wednesday along with another inventory report, so it will be interesting to see how they end this week.
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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