Top Day Recommendations
10.19.11
After the close, Apple reported a miss. It was its first miss in earnings since 2004. Moody’s also downgraded Spain saying that it is vulnerable to event risk and that the country may have difficulty in finding financing going forward. All of this occurred at the end of the day which saw a sizeable rally as a result from a story from the Guardian that the Euro stability fund was going to be financed to the tune of 2 trillion dollars. Dow Jones came out shortly thereafter and said that the story was inaccurate. Overnight, there’s a residual effect from the Apple miss and a sense of confusion regarding the size of the bailout fund which is just leveraging leverage. There’s yet another big meeting over the weekend in Europe. Can’t wait. Meanwhile volatility is massive. Gold has a 50 dollar range yesterday, crude $3.00.
Something for everyone and with these amplitudes there’s not much need to carry overnight exposures. Remember the way to handle increased volatility is to reduce size and tighten stops.
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 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 W S1 DS DR
WR1 WR2
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Dec Emini |
P |
1134 |
1176 |
1195.7 |
1240.00 |
1241 |
1264 |
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S+P |
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5 |
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Dec Emini |
P |
2147 |
2257 |
2321 |
2388 |
2423 |
2479 |
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Naz |
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Dec Yen |
P |
127.89 |
128.75 |
130.13 |
130.63 |
130.83 |
132.05 |
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Dec EC |
P |
1319 |
1353 |
136.49 |
138.96 |
1404 |
1422 |
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Dec 10 |
PRD |
126.25 |
127.14 |
128.11 |
129.09 |
128.22 |
129.18 |
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Year |
(U) |
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Dec 30 |
N |
135.20 |
137.01 |
138.16 |
140.27 |
140.20 |
142.26 |
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Year |
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Nov |
PRD |
11.17 |
11.93 |
12.33 |
12.60 |
13.11 |
13.52 |
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Soybeans |
(D) |
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Dec Corn |
N |
5.74 |
6.07 |
6.33 |
6.50 |
6.63 |
6.87 |
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Dec Gold |
PRD |
1617 |
1649 |
1628 |
1677 |
1703 |
1735 |
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(D) |
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Dec Silver |
N |
30.27 |
31.22 |
30.68 |
32.66 |
33.11 |
34.05 |
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Dec |
P |
316 |
329 |
327 |
343 |
342 |
357 |
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Copper |
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Dec |
P |
81.14 |
84.21 |
86.44 |
89.92 |
88.88 |
90.48 |
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Crude |
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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. 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.