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CPI forecasts inflationary pressures

Top Day Recommendations

January 14

Forecasts for the Consumer Price Index suggest inflationary pressures and

because of that the dollar has refound a bid this morning. Another

interesting wrinkle this morning is the gas/heat spread. It’s freezing out

there, right? So gas is higher and heat is unchanged.

Hawkish comments yesterday from Trichet about German inflation and the

tool of higher interest rates to combat this unleashed another short

covering round in the EC.

Retail sales at 8:30 will set the tone for the day.

Week of January 10 - January 14

Date ET Release For Actual Briefing.com Consensus Prior Revised

From

Jan 11 10:00 Wholesale Inventories Nov 1.0% 1.3 1.9%

Jan 12 07:00 MBA Mortgage Purchase Index 01/07 NA NA +2.3%

Jan 12 08:30 Export Prices ex-ag. Dec NA NA 0.8%

Jan 12 08:30 Import Prices ex-oil Dec NA NA 0.8%

Jan 12 10:30 Crude Inventories 01/08 NA NA -4.16M

Jan 12 14:00 Treasury Budget Dec NA NA -$91.4B

Jan 12 14:00 Fed's Beige Book Jan

Jan 13 08:30 Initial Claims 01/08 415K 420K 409K

Jan 13 08:30 Continuing Claims 01/01 4000K 4070K 4103K

Jan 13 08:30 PPI Dec 0.8% 0.7% 0.8%

Jan 13 08:30 Core PPI Dec 0.1% 0.2% 0.3%

Jan 13 08:30 Trade Balance Nov -$39.5B -$40.6B -$38.7B

Jan 14 08:30 CPI Dec 0.3% 0.4% 0.1%

Jan 14 08:30 Core CPI Dec 0.1% 0.1% 0.1%

Jan 14 08:30 Retail Sales Dec 1.0% 0.7% 0.8%

Jan 14 08:30 Retail Sales ex-auto Dec 0.8% 0.6% 1.2%

Jan 14 09:15 Industrial Production Dec 0.4% 0.4% 0.4%

Date ET Release For Actual Briefing.com Consensus Prior Revised

From

Jan 14 09:15 Capacity Utilization Dec 75.3% 75.5% 75.2%

Jan 14 09:55 Mich Sentiment Jan 75.5 75.0 74.5

Jan 14 10:00 Business Inventories Nov 0.9% 0.7% 0.7%

Current views, speculations and suggestions

good till close of business today. These are strictly technical in nature

only, not fundamentally based or biased.

Legend:

P is positive

N is Negative

PRD is Potential Trend Reversal Day

S2 is strong support

S1 is good support

DS is Daily Support

DR is Daily Resistance

R1 is Good resistance

R2 is Strong Resistance

S1, S2, R1, R2 change once, weekly, so DS can be below weekly support

levels and DR can be above weekly resistance levels as a week of trading

unfolds

Levels are for the most active futures contract.

DAILY SUPPORT AND RESISTANCE

Trend S2 S1 DS DR R1 R2

Emini

S&P N 1244.50 1256.00 1276.00 1285.00 1278 1288.50

Emini NQ P 2195 2234 2296 2309 2297 2232

Yen PRD 117.23 118.87 120.45 121.34 122.80 125.09

EC P 125.57 127.43 131.99 134.54 132.73 136.17

10 year P 118.15 119.18 120.12 121.18 121.10 121.31

30 year P 117.28 119.14 120.12 121.18 122.11 123.22

Soybeans P 13.255 13.45 14.08 14.27 13.96 14.28

Corn P 5.09 5.82 6.35 6.51 6.26 6.47

Gold P 1310.50 1340.1 1373.1 1396.9 1411.8 1453.9

Silver P 26.48 27.60 28.59 29.88 30.55 32.58

Copper N 409.5 419.0 433 442 443.50 459.0

Mar

Crude P 85.50 87.60 91.67 93.11 92.30 95.50

Sugar P 27.65 29.59 31.38 32.89 33.46 35.39

**************

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. But

whatever you do, stop thinking about any other

alternative and use Stops.

********************************************

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

***********************

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.