Stress-Tests Will be Released at 5 pm Today/ECB Lowers Rates

Top Day Rec

05.07.09

ECB lowers rates while BOE leaves rates unchanged. ECB doesn’t suggest unusual market operations such as buying its own debt to stimulate eco activity, otherwise known as quantitative easing. Stateside we will have the release of the “stress tests” neo-nomenclature for a doomsday audit. We have been assured by the Treasury Secretary that the results will be reassuring. Results out at 5 pm.

May 04	10:00	Construction Spending	Mar	NA	-1.4%	-0.9%
May 04	10:00	Pending Home Sales	Mar	NA	0.0%	2.1%
May 05	10:00	ISM Services	Apr	NA	42.0	40.8
May 06	08:15	ADP Employment Change	Apr	NA	-643K	-742K
May 06	10:30	Crude Inventories	05/01	NA	NA	+4053K
May 07	08:30	Initial Claims	05/02	NA	NA	NA
May 07	08:30	Productivity-Prel	Q1	NA	0.9%	-0.4%
May 07	08:30	Unit Labor Costs	Q1	NA	2.5%	5.7%
May 07	15:00	Consumer Credit	Mar	NA	-$3.3B	-$7.5B
May 08	08:30	Average Workweek	Apr	NA	33.2	33.2
May 08	08:30	Hourly Earnings	Apr	NA	0.2%	0.2%
May 08	08:30	Nonfarm Payrolls	Apr	NA	-620K	-663K
May 08	08:30	Unemployment Rate	Apr	NA	8.9%	8.5%
May 08	10:00	Wholesale Inventories	Mar	NA	-1.0%	-1.5%

Current views, speculations and suggestions

June Yen: neg with res at 102.30

June Swiss: positive with support at 87.55

June EC: positive with support at 131.95

June Canadian: positive with support at 84.95

June BP: pos with support at 149.30.

June ES: positive with support at 899.50

June NQ: positive with support at 1407.50

June Russell: positive with support at 496.00

June Mini Dow: positive with support at 8345

Jun Gold: positive with support at 900

July Silver: pos with support at 13.38

June crude: positive with support at 54.50

July Soybeans: positive with support at 10.90

July Wheat: positive with support at 5.49

June Ten Year: positive with support at 120.06

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International Markets

June Bund: neg with res at 122.50

June Dax: pos with support at 4832

NK: pos with support of 9333

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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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HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

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.