Existing home sales number comes out today and the Fed chairman is speaking about the general health of the banking system

Top Day Rec

10.23.09

Just existing home sales today. Big move overnight in the BP on a slump in GDP. Put the cork back in the Pimm’s Cup. European bourses all higher by roughly 1%.  US equity earnings mixed. Crude unchanged.  Took the water taxi to work today. Courses right down the Hudson. Affords the opportunity to get nauseous before you get to work. Patience is sought today. A new phone system was installed last night.

The Fed Chairman is speaking as we write this. He’s talking about the general health of the banking system at the Fed Reserve Bank of Boston meeting in Sharon Mass.

Microsoft results is boosting the Nasdaq

 

Oct 20	08:30	Building Permits	Sep		580K	590K	579K
Oct 20	08:30	Housing Starts	Sep		585K	610K	598K
Oct 20	08:30	PPI	Sep		0.0%	0.0%	1.7%
Oct 20	08:30	Core PPI	Sep		0.0%	0.1%	0.2%
Oct 21	10:30	Crude Inventories	10/16		NA	NA	0.33M
Oct 21	14:00	Fed's Beige Book
Oct 22	08:30	Initial Claims	10/17		525K	517K	514K
Oct 22	08:30	Continuing Claims	10/10		5950K	5990K	5992K
Oct 22	10:00	Leading Indicators	Sep		1.0%	0.9%	0.6%
Oct 22	10:00	FHFA Housing Price Index	AUG		0.3%	0.3%	0.3%
Oct 23	10:00	Existing Home Sales	Sep		5.45M	5.35M	5.10M

 

Current views, speculations and suggestions

(good till close of business today). These are technical in nature only.

 

Dec Yen: neg with res at 109.60. Target for the day is 108.50      

Dec Swiss: pos with res at 99.85      

Dec EC: pos with support at 150.00 and res at 105.60

Dec Canadian: pos with support at 94.80

Dec BP:  pos but res at 165.20 on GDP news  

Dec ES: pos with res at 1098

A 50% retracement brings us up to 1127

 

Dec NQ: pos with res at 1784. A 61% retracement from high to low in the Nadaq would bring us to 1784.00 (convergence?)

     

Dec Mini Dow: pos with daily res at 1010. A 50% retracement takes us to 10,368

 

Dec Gold: pos with res at 1068

Dec Silver: pos with res at 18.04     

Dec Copper: pos with res at 305.50  

Dec Crude: pos with res at 81.80       

Jan Soybeans: pos and above daily res at 10.19  

Dec Wheat: pos with res at 5.69  

Dec Ten Year:  potential reversal day     

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International Markets

Dec Bund: pos with support of 120.80  

Dec Dax:  pos with support at 5770

Dec NKD pos with support at 102.58  

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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.

 

Charles Kespert

 

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