Hello All,
Rates remained unchanged, and although we had a positive reaction the market then sold off as expected. We should see continuation of the current patterns through Friday.
1) Sell Sept.Emini S&P futures at the market (1089.5), and sell another at 1094.75 if it reaches, using a 1104 stop. Minimum target is 1070, with a possibility of 1046 if we really break down. New home sales dropped 33% in May to 300,000 since we no longer have the first time homebuyer tax credit. The biggest percentage drop since 1963. Folks, we are not out of the woods yet by all means.
2) Sell Aug Crude futures 77.41, with a 78.20 stop. Exit 73.50 into Sunday/Monday. The DOE report stated a build of 2 million barrels whereas the API on Tuesday reported a build of 3.6million. Although friendlier than the API, the news could not ignore the slowing economy.
3) Buy Sept. Euro futures at 1.2274, with a 1.2197 stop. Exit 1.2505. The market held support right above 1.22 and put in a nice reversal. I would expect one more leg up before the market gets pounced on. I would expect the major reversal to the downside to come in my Sunday/Monday, but it may even take an extra week after July 4th weekend, which coincides with July option expiration.
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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