Hello All,
I believe we made the right decision to sit on the sidelines today as market correlations were off the mark. Most markets are still completing toppy action and with stock option expiration tomorrow we should stay between 1100 and 1120 on the S&P. The S&P practically reached our first target of 1118, and surprisingly crude failed to make a run at our 78.50 target while the Euro accelerated without any real support from outside markets. We'll have to respect the move in the Euro and allow the possibility to reach up to 1.25 which would be an excellent selling opportunity. We would also like to sellcrude in the 78.50 region, and the S&P in the 1118-1127 region. Given the fact that it is the end of the week, and we have our FOMC announcement next week we would rather concentrate on capturing option premium instead of taking futures positions. I hate being confronted with something unexpected, so a couple days off is 10x better than a couple days loss. Scalpers feel free to use these resistance leves to squeeze off a couple points, but the easy money should be made off option premiums being bid up prior to FOMC.
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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