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Stocks continue to back away from multi month highs

Top Day Recommendations

3.20

Stocks continue to back away from multi month highs. The market has been up 12% in 2012 thus far and 28% from last year’s lows, lifted by liquidity injections and encouraged by navigation around the Greek debt crisis. Another negative inflection was news that China raised fuel prices by the most in two years. This is the second price increase in less than six weeks. The yield on the 10 year note increased 9 trading sessions in a row; a tenth consecutive yield increase would have matched a run last seen in April 1974 during the oil embargo.

Week of March 19 - March 23

Date
ET
Release
For
Actual
Briefing.com Briefing.com
Prior
Revised
         
Forecast
Consensus
 
From
Mar
10:00
NAHB Housing
Mar
 
31
31
29
 
19
Market Index
   
             
Mar
08:30
Housing Starts
Feb
 
715K
705K
699K
 
20
   
               
Mar
08:30
Building Permits
Feb
 
680K
695K
676K
 
20
   
               
Mar
07:00
MBA Mortgage Index
03/17
 
NA
NA
-2.4%
 
21
   
               
Mar
10:00
Existing Home Sales
Feb
 
4.45M
4.61M
4.57M
 
21
   
               
Mar
10:30
Crude Inventories
03/17
 
NA
NA
1.750M
 
21
   
               
Mar
08:30
Initial Claims
03/17
 
355K
355K
351K
 
22
   
               
Mar
08:30
Continuing Claims
03/10
 
3400K
3363K
3343K
 
22
   
               
Date
ET
Release
For
Actual
Briefing.com Briefing.com
Prior
Revised
         
Forecast
Consensus
 
From
Mar
10:00
FHFA Housing Price
Jan
 
NA
NA
0.7%
 
22
Index
   
             
Mar
10:00
Leading Indicators
Feb
 
0.6%
0.6%
0.4%
 
22
   
               
Mar
10:00
New Home Sales
Feb
 
320K
321K
321K
 
23
   
               

MARKET PLACE

Numbers are good up until the close of business today. These are strictly technical in nature, not fundamentally based or biased.

Legend

U is Up

D is Down

PRD is Potential Reversal Day

S2 is Weekly strong support

S1 is Weekly good support

DS is Daily Support

DR is Daily Resistance
         
R1 is Weekly Good Resistance
       
R2 is Weekly Strong Resistance
       
Levels are for the most active futures contract
   
   
Daily Support and Resistance
 
               
 
Trend
WS2
WS1
DS
DR
WR1
WR2
             
               
Mar
U
1346
1372
1388
1410
1412
1426
           
ES
             
Mar
U
2597
2653
2707
2741
2742
2775
           
Nasdaq
             
Mar
U
117.0
118.49
119.31
120.44
121.71
123.47
           
Yen
 
3
         
             
Mar
U
129.3
130.54
131.71
132.95
132.42
133.11
           
EC
 
5
         
             
june 10
D
126.0
127.13
127.17
128.02
130.15
132.10
           
Year
 
7
         
             
               
june 30
D
132.0
134.07
134.22
136.17
139.29
143.12
           
Year
 
0
         
             
May
U
13.14
13.44
13.53
13.75
13.905
14.07
           
Soybea
             
ns
             
May
U
6.307
6.517
6.53
6.72
6.837
6.947
           
Corn
             
April
D
1588
1624
1645
1674
1707
1753
           
Gold
             
May
U
30.09
31.34
32.03
33.25
34.12
35.66
           
Silver
             
May
U
375
382
383
393
394
400
           
Copper
             
April
U
102.3
104.76
105.93
108.70
108.54
109.94
           
Crude
 
8
         
             
               

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.