Top Day Recommendations
9.30.11
Many had hoped that end of quarter window dressing would have lifted stocks over the past several sessions; however that doesn’t seem to be the case. Declines in Chinese manufacturing and German retailsales reflect a possible worldwide economic slowdown. Germany did pass the expansion of the European relief fund but again this is viewed as a stop gap measure not a long-term solution. The expansion of thefund fails to address the recapitalization of European banks. It’s interesting to
note that euro zone indebtedness is 85% of GDP while US indebtedness is 95% of GDP. Also there is a structural difference in the debt itself; in Europe it is a sovereign indebtedness more than consumer indebtedness while in the United States it’s just the opposite.
Today’s actually a busy day in terms of economic data points. Personal income and spending along withPCE prices and its core rate at 830 while Chicago area purchasing managers’ index comes out at 945and
finally the University of Michigan consumer sentiment at
955.
Enjoy the weekend. Maybe it will stop raining.
Legend
P is Positive N is Negative
PRD is Potential 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
Levels are for the most active futures contract
Daily Support and Resistance
Trend S2 S1 DS DR
|
Dec Eminifile S+P |
P |
1036.2 5 |
1083.00 |
1136.2 5 |
1173.50 |
1195.50 |
1261.25 |
|
Dec Emini Naz |
PRD (D) |
2024.2 5 |
2113.00 |
2141.5 0 |
2486.50 |
2311.50 |
2421.50 |
|
Dec Yen |
P |
128.93 |
129.71 |
129.95 |
131.02 |
131.35 |
132.35 |
|
Dec EC |
N |
131.31 |
132.93 |
134.19 |
136.49 |
137.04 |
139.53 |
|
Dec 10 Year |
N |
128.26 |
129.28 |
128.19 |
130.12 |
131.31 |
133.03 |
|
Dec 30 Year |
N |
136.30 |
140.27 |
141.08 |
142.10 |
147.26 |
150.28 |
|
Nov Soybeans |
N |
1181 |
1219 |
12.13 |
12.42 |
1327 |
1396 |
|
Dec Corn |
N |
593 |
643 |
6.24 |
6.39 |
682 |
726 |
|
Dec Gold |
N |
1507 |
1631 |
1588.9 0 |
1641.80 |
1784 |
1909 |
|
Dec Silver |
N |
2286 |
2694 |
29.22 |
31.67 |
3799 |
4497 |
|
Dec Copper |
N |
278 |
305 |
312 |
323 |
375 |
418 |
|
Nov Crude |
N |
7130 |
7560 |
79.86 |
84.20 |
8611 |
9227 |
N.B.: if you initiate a trade using ANY of these numbers use a STOP at least equivalent to 2½%. Repeat: use Stops. Don’t think about using Stops. Use Stops. Some find it appropriateto 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 anduse 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.