Dollar drops on China's call for a super currency

Top Day Rec

6.26.09

This morning personal income comes in at .3 while spending comes in better than expected at 1.4. University of Michigan consumer confidence at 9:55.

 

Overnight, China calls for a super currency to stand as a reserve currency in place of the dollar. They’ve done this before. It seems to be massively counterproductive to their US debt holdings. DX drops below 80. Gold higher on this.

    

Jun 23	10:00	Existing Home Sales	May		NA	4.83M	4.68M
Jun 24	08:30	Durable Orders	May		NA	-0.9%	1.9%
Jun 24	08:30	Durable Orders, Ex-Transportation	May		NA	-0.5%	0.8%
Jun 24	10:00	New Home Sales	May		NA	360K	352K
Jun 24	10:30	Crude Inventories	06/19		NA	NA	-3.87M
Jun 24	14:15	FOMC Rate Decision
Jun 25	08:30	Initial Claims	06/20		NA	608K	NA
Jun 25	08:30	Q1 GDP - Final	Q1		NA	-5.7%	-5.7%
Jun 26	08:30	Personal Income	May		NA	0.2%	0.5%
Jun 26	08:30	Personal Spending	May		NA	0.4%	-0.1%
Jun 26	08:30	PCE Core	May		NA	0.2%	0.3%
Jun 26	09:55	Mich Sentiment-Rev	Jun		NA	69.0	69.0

 

Current views, speculations and suggestions

(good till close of business today)

 

Sept Yen: pos with support at 104.25

Sept Swiss: pos and above daily res at 92.14

Sept EC: pos and trading just above daily res at 140.87  

Sept Canadian: neg with res at 87.25

Sept BP:  neg with res at 166.00      

Sept ES: pos with support at 899    

Sept NQ: potential reversal day or confirmation of trend day (down)     

Sept Mini Dow: neg with res at 8490  

Aug Gold: positive and trading at daily res of 948   

July Silver: pos and trading above daily res of 14.20 

Aug crude: pos with support at 68.60   

Nov Soybeans: neg with res at 10.13

Sept Wheat: neg with res at 5.686

Sept Ten Year: pos with support at 115.23        

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International Markets

Sept Bund:  pos with support at 120.40       

Sept Dax: neg with res at 4858

NKD: neg with res at 100.36

 

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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. Some find it appropriate to look at the margin requirement and use that as a stop or if it’s a steep initial requirement, use half.

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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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