Navigation: Main page » Stocks Mutual Funds

 Print this page 

Author: Arthur Stern

DAILY TRADING ADVISORY 12-October- 2007 ECONOMIC CALENDAR 8:30 AM Retail sales 8:30 AM Retail sales ex-auto 8:30 AM PPI 8:30 AM Core PPI 10:00 AM Business inventories 10:00 AM Mich sentiment-preliminary

A strong opening pushed the EMINI SP futures just to our resistance level at 1582.50-1584.00 printing a high at 1582.75, from here the contract backed off and tested the 1579.00 area rallying back and making new highs at 1583.50. Two nice set ups for those who follow our newsletter and trading mentorship. A double bottom was bought and the index rallied to new all time highs reaching 1586.75 but without a confirmation of the NASDAQ. My intraday update quoted "the market is feeling a little toppy specially the NASDAQ (NQ) I will be selling with stops above the highs", and God I was right. The gap up was a classic way to end this kind of move up, and two days ago I marked that the exhaustive move in the NASDAQ should bring a correction. When I referred yesterday to the DOW CASH, I wrote that only breaking above 14200 will bring more buyers in, and after reaching 14198, it completely collapsed falling 260 points from its highs. All the indexes plunged as late longs could not find the exit, bringing the EMINI SP futures 30 points down to the 1556.25 area and the NQ (EMINI NASDAQ futures) 60 points from its high testing 2147.00. Some short covering was seen during the last hour, but all the indexes closed lower. Yesterday move it's only an early indication of a setback, and I still think that we can enter in some kind of consolidation and distribution pattern. I will need further confirmation in order to call that a top is in place, but closes above 1579.20 on the SP futures and 14200 on the DOW CASH are nothing but a bull trap. For today's session, we get the Retail sales and PPI before the open, and if the market does not start on a positive tone another sharp drop could be seen bringing the EMINI SP futures to test last week lows at 1545.50-1546.50 area, if that occurs, a good reflect rally could take place. We have initial resistance at 1566.25-1567.00 on the EMINI SP futures and 2170.00-2172.00 on the EMINI NASDAQ futures, these areas will have to be broken up and hold on a first set back if yesterday sell off was nothing more that a counter trend day in a bull market, if this happens, the next test is at 1569.50 and 2178.00 respectively where pivots levels come in play. If those are cleared, the next hurdles will be 1576.00-1577.00 on the EMINI SP futures and 2187.00-2189.00 on the NQ and we have a strong day. Above this reaching 1582.50-1584.00 on the EMINI SP and 2198.00-2202.00 on the NASDAQ futures will mean that higher prices could be seen next week. We have initial support at 1560.00-1559.00 on the EMINI SP futures and 2156.50-2154.00 on the EMINI NASDAQ futures, if those are broken, a test of yesterday's lows will be seen in the 1556.00-1554.50 zone on the EMINI SP futures and 2148.00-2145.00 on the EMINI NASDAQ. If these areas do not invite buyers in, the imminent test of last week lows on the EMINI SP will be the next stage at 1546.00-1545.50 and closing the gap at 2124.00 on the EMINI NASDAQ futures will be a nice objective. TODAY SUPPORT, PIVOT AND RESISTANCE LEVELS S&P NASDAQ Resistance 3 1582.50-1584.00 2198.00-2202.00 Resistance 2 1576.00-1577.00 2187.00-2189.00 Resistance 1 1566.25-1567.00 2170.00-2172.00 PIVOT 1569.50 2178.00 Support 1 1560.00-1559.00 2156.50-2154.00 Support 2 1556.00-1554.50 2148.00-2145.00 Support 3 1546.00-1545.50 2124.00-2121.00

S&P FIBBONACCI NUMBERS NASDAQ FIBONNACCI NUMBERS 1617.25 2282.25 1605.60 2256.18 1586.75 2214.00 1575.10 2187.93 1571.50 2171.82 1556.25 2145.75 1537.40 2103.57 1525.25 2077.50

Futures and options trading have large potential rewards, but also LARGE POTENTIAL RISK. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy or sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this document. The past performance of any trading system or methodology is not necessarily indicative of futures results. DAY TRADING INVOLVES HIGH RISK AND YOU CAN LOSE A LOT OF MONEY. Every effort has been made to accurately represent all of our products and it's potential. As with any business there is a risk of loss of capital and there is no guarantee that you will earn any money. The financial markets are risky .Investing is risky. The foregoing has been prepared only and solely for informational purposes and is not a solicitation or an offer to buy or sell any security, option or futures contract. Opinion is based on historical research but there is not guarantee that futures results will be profitable. We are not advocating or recommending trading futures and our services, notes and entry and exit prices to the markets only reflects our opinion an a manner how markets can be traded. We mention many indexes like the S&P, NASDAQ, Russell, Dow Jones as T-Bonds only because they are the most known and liquid markets, and not because we recommend in any way to be traded. You can lose more than your initial investment. We are not Brokers, Registered Trading Advisors, Registered Investment Advisors or Commodity Trading Advisors. All the material contained here or in any communication is only for information purposes and part of our thoughts and personal conclusions. For additional RISK DISCLOSURE information you can check. www.cme.com www.cbot.com Copyright © by theminitrade.com www.theminitrade.com 5850 Coral Ridge Dr. Suite 302 Coral Springs. Fl. 33076