Hello All,
Following zero jobs growth on Friday, the big news of the day was the SNB pegging it's currency maintaining a bid above 1.20 vs. the Euro. Everybody is watching developments out of Europe, there are negotiations with respect to proper collateral for a Greek bailout, and Italy is to vote on austerity measures amid a strike. The Euro breached key support at the 1.40 marker and will most likely attempt a test of the previous low around 1.38 on the current leg. On the energy front, oil was weak on the heels of bad employment data, but surprisingly ended the day strong. Overall, a lot of mixed signals on the day, and although Gold had a setback in reaction to the SNB move, the U.S. 10 yr yield hit a new low at 1.91% and in my opinion is the true barometer for our economic health. The S&P has had its worst ever 3 day start for September, and we look towards unemployment claims later in the week along with separate economic addresses from Bernanke and Obama.
1) Sell Sept Emini S&P at the market (1171), with a 1190 stop. Exit Thurs night.
2) Sell Oct. Crude at 86.74, with a 87.76 stop. Exit 83.19.
3) Sell Sept. Euro at 1.4088, with a 1.4140 stop. Exit 1.3870.
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Best,
Arman Vahdatinia
President, Chief Market Strategist
1-877-338-EXPO [3976] ext. 25
*There is a substantial risk of loss trading futures and options. Past performance is not necessarily indicative of future results.
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