Hello All,
All eyes were on Helicopter Ben as he stated our economic outlook was 'unusually uncertain'. Without delving into much detail as to what actions the Fed may take to spur economic recovery, the markets had the exact opposite reaction from rumors the day prior. We nailed our short near perfect on the S&P at 1087, and would recommend taking profits at the market (1064). Technically and fundamentally there are too many mixed signals to comprehend. I've attempted to make sense of the cycles, but refuse to make lemonade out of these lemons. When in doubt, I'm out. Although it seems as though the bears have the near-term advantage, my main point of conflict is the fact that treasuries made a new high without confirmation from stocks making a new low. This last happend on July 14th which signaled the intermin top in stocks, but will it be a delayed reaction the 2nd time around as well? If we do get a breakdown in stocks, I would expect the 1046 region to hold on the S&P, which would coincide with a test of the $74-$75 region in Crude oil. If these levels do come in, I'd potentially be a buyer, but would rather sit on the sidelines when the European banks stress test results are revealed.
Best,
All eyes were on Helicopter Ben as he stated our economic outlook was 'unusually uncertain'. Without delving into much detail as to what actions the Fed may take to spur economic recovery, the markets had the exact opposite reaction from rumors the day prior. We nailed our short near perfect on the S&P at 1087, and would recommend taking profits at the market (1064). Technically and fundamentally there are too many mixed signals to comprehend. I've attempted to make sense of the cycles, but refuse to make lemonade out of these lemons. When in doubt, I'm out. Although it seems as though the bears have the near-term advantage, my main point of conflict is the fact that treasuries made a new high without confirmation from stocks making a new low. This last happend on July 14th which signaled the intermin top in stocks, but will it be a delayed reaction the 2nd time around as well? If we do get a breakdown in stocks, I would expect the 1046 region to hold on the S&P, which would coincide with a test of the $74-$75 region in Crude oil. If these levels do come in, I'd potentially be a buyer, but would rather sit on the sidelines when the European banks stress test results are revealed.
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.
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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