Top Day Recommendations
10.14.011
Wow. All I can say is wow. I got off the subway at Wall St. I walk up the stairs to Broadway. Immediately I’m caught up in his sea of people. Thousands of people. It’s crowd behavior at its worst. The police are running mopeds through the crowds. There’s hand-to-hand combat breaking out around the Bull. There is an ad hoc marching band playing something unrecognizable as I just duck a billy club heading for my cranium. This sea has an incredibly strong undertow and pulls you further down Broadway. You can’t fight the current. There’s nowhere to go. There’s no way to escape. You just get pulled along and hope that the fact that you’re wearing a suit coat and carrying a briefcase isn’t inflammatory enough to attract wrath. After 15 minutes of helplessness I finally found myself in front of 75 Broad Street and work. I don’t want to repeat that experience anytime soon. I think the scariest part is the adrenaline rush of the crowd and the breakdown of patience by the police. Violence is an unmistakable sign of failure.
Overnight, China kept interest rates unchanged. Retail sales out at 830. Michigan consumer sentiment at 955 and business inventories at 10. Retail sales +0.6%. Import prices a little hot.
Will we get the obligatory 10 handle decline on Friday afternoon in the S&P as a precaution to developments in Europe over the weekend?
Numbers are good up until the close of business today. These are strictly technical in nature, not fundamentally based or biased.
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 Emini S+P |
P |
1026.5 0 |
1090.75 |
1187 |
1214 |
1196.50 |
1238.00 |
|
Dec Emini Naz |
P |
1963.5 0 |
2082.50 |
2297 |
2364 |
2273.00 |
2346.00 |
|
Dec Yen |
P |
128.72 |
129.50 |
129.62 |
130.68 |
130.87 |
131.64 |
|
Dec EC |
P |
129.71. |
131.76 |
136.95 |
138.97 |
135.86 |
137.23 |
|
Dec 10 Year |
N |
126.12 |
128.09 |
127.16 |
128.27 |
130.22 |
132.16 |
|
Dec 30 Year |
N |
136.15 |
138.28 |
137.24 |
140.12 |
145.02 |
148.27 |
|
Nov Soybeans |
P |
11.28 |
11.43 |
12.38 |
13.76 |
11.84 |
12.04 |
|
Dec Corn |
N |
5.51 |
5.75 |
6.25 |
6.46 |
6.20 |
6.41 |
|
Dec Gold |
P |
1552 |
1598.7 |
1653 |
1685 |
1683.6 |
1725.0 |
|
Dec Silver |
N |
26.42 |
28.82 |
31.14 |
32.49 |
33.24 |
35.25 |
|
Dec Copper |
P |
286 |
307 |
327 |
341 |
341 |
354 |
|
Nov Crude |
P |
71.55 |
77.21 |
83.13 |
86.48 |
86.26 |
89.65 |
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.