Possible Fed's Action to Buy More of its Debts Might Trigger a Sell-Off in the Equity Futures

Top Day Rec

05.20

The minutes of the FOMC meeting suggested that the Fed may have to buy more of its debt which in turn suggested that the worst may not be over which in turn triggered a selloff in the stock market.

Jobless claims fall less than expected.

Britan’s debt rating lowered.

LEI out at 10.

        

May 19	08:30	Building Permits	Apr		530K	530K	516K
May 19	08:30	Housing Starts	Apr		525k	527K	510K
May 20	10:30	Crude Inventories	05/15		NA	NA	-4.63M
May 20	14:00	FOMC Minutes	04/29		NA	NA	NA
May 21	08:30	Initial Claims	05/16		600k	NA	610K
May 21	10:00	Leading Indicators	Apr		0.5%	0.6%	-0.3%
May 21	10:00	Philadelphia Fed	May		-18.0	-18.0	NA

 

 

Current views, speculations and suggestions

 

June Yen: pos with support of 104.35.   

June Swiss: positive with support at 90.16

June EC: positive with support at 136.44   

June Canadian: positive with support at 86.86

June BP:  pos with support at 153.25.     

June ES: neg with res at 907.00 and 915.00

June NQ: pos with support at 1378.50 and 1365

June Russell: neg with res at 500    

June Mini Dow: neg with res at 8452

Jun Gold: positive with support at 928.00    

July Silver: pos with support at 13.96

July crude: positive with support at 59.00         

July Soybeans: positive with support at 11.45

July Wheat: positive with support at 5.87

June Ten Year: neg with res at 121.21        

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International Markets

June Bund: neg with res at 121.12        

June Dax: pos with support at 4888

NK: neg with res at 9443  

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N.B.: if you initiate a trade using any of these numbers use a stop at least equivalent to 2 ½%. Repeat: use stops.  Don’t think about using stops. Use stops.   

 

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Futures trading entails considerable risk and is not for everyone. An account can lose more than its initial investment. Stops are not necessarily filled at the stop level. Past performance is not a guarantee of future results.

 

Charles Kespert

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ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, AL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETIOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.