Top Day Recommendations
There’s an old adage which doesn’t exist which should exist: equity markets make people happy or sad while bond markets can change fiscal policy and governments. Now that Greece has given up the spotlight, the Italian bond market is now blinded by the light. Italian bond yields have almost doubled overnight in the wake of the Berlusconi resignation, non resignation, resignation. The market is having a hard time seeing a new Italian leadership hammering through austerity measures. Because of that, fears of a European recession have resurfaced and this whirlpool of fear is dragging down equities worldwide while strengthening the dollar and punishing the oil market.
It’s easy to say that both crude oil and equities had gotten ahead of themselves over the past three weeks. The ascent line or speed line on the charts was a little too steep and a crack back correction should not be that much of a surprise.
We’re still in this theater of time where one-day it’s throwing caution to the winds while the next day is spent in bed nursing a hangover. This bipolar environment will continue into Q1.
Week of November 07 - November 11
|Nov||07:00||MBA Mortgage Index||11/05||NA||NA||+0.2%|
|Nov||08:30||Export Prices ex-ag.||Oct||NA||NA||0.3%|
|Nov||08:30||Import Prices ex-oil||Oct||NA||NA||0.2%|
Numbers are good up until the close of business today. These are strictly technical in nature, not fundamentally based or biased.
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|
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.
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.