Hello All,
We have Case Schiller and Consumer Confidence reporting tomorrow and given the current weakness I think the market will remain weak for the most part tomorrow. Given the inherent weakness and the fact that we have our unemployment numbers due on Friday, I would suspect congestion on Wed/Thurs, which would be slightly favorable if we can squeeze out a new low overnight. This pattern would correlate with crude and the euro.
1) Hold Sept. Emini S&P futures shorts, with a 1068.50 stop. Exit 1056.00, and reverse, using a 1043.00 protective stop. Hold into at least Thursday. We had cancelled our additional sell order for 1077 on Friday after missing by 5ticks overnight given the fact that she was unable to break support and we didn't necessarily need to add a 3rd position on a rally with G-20 over the weekend.
2) SeptEuro currency futures should find support around 1.22, which would provide a buying opportunity for those with a strong stomache. With unemployment at weeks end, I am in no hurry to jump aboard this market trading futures; or at the very least putting out a recommendation 10 hours in advance.
3) Aug Crude oil futures have retraced the swing up with respect to Hurricane Alex veering offcourse enough to miss most offshore rigs. Obvious support is the 77.50 level where the market quickly advanced on Friday, so I would probably expect the level to be broken just to take out stops. This would also attract new sellers, but I wouldn't be too quick to sell this market either. If anything you'd want to only trade this market from the long side, and consider pullbacks nice buying opportunities. Will consider a buy just above $76 during the day session with respect to outside market conditions. Call in to the office for exact pricing/timing.
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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