carleygarner
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May 21st, 2009
Red on Wall St.
Investors quickly reverted to pessimism following yesterday's late session reversal. Overnight weakness was propelled lower by signs of continued weakness on the jobs front and a reduced credit rating outlook for Britain. According to Rick Meckler, president of investment firm Liberty View Capital Management in NY, "The outlook downgrade of the U.K. debt is being taken pretty negatively." He added, "it sets a precedent for what could start to happen to a lot of the world, given the amount of spending that's going on."
Additionally, the Philly Fed's survey of mid-Atlantic manufacturing conditions shrunk for the eighth consecutive month. And provided traders with a reminder of yesterday's noticeably less optimistic view of the economy from the standpoint of the FOMC.
Stocks and bond traded side-by-side today, which is a stray from the norm. However, it can somewhat be justified by comments made by Pimco's Bill Gross suggesting that the markets fear that the U.S. is at risk of losing its AAA credit rating.
From a technical standpoint, the equity markets are teetering on their make or break levels. This combined with holiday volume, trading is tricky and should likely be scaled back or even stopped until Tuesday.
Coming into Thursday, we were looking for a possible pullback to 889 in the S&P and possibly even 886 but didn't expect weakness into the 870's. This leaves us "on the fence" in terms of market direction from here. If I had to pick a side, I would be cautiously and slightly bullish. Today's close in the June futures at or near our critical 889 leaves tomorrow highly uncertain but we do think that an overnight or early session rally extending to 902 is probable. The pivot point in the Dow is 8,293 above it the bulls have an edge and below the bears do....sidelines seems like the only comfortable position from here.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
Red on Wall St.
Investors quickly reverted to pessimism following yesterday's late session reversal. Overnight weakness was propelled lower by signs of continued weakness on the jobs front and a reduced credit rating outlook for Britain. According to Rick Meckler, president of investment firm Liberty View Capital Management in NY, "The outlook downgrade of the U.K. debt is being taken pretty negatively." He added, "it sets a precedent for what could start to happen to a lot of the world, given the amount of spending that's going on."
Additionally, the Philly Fed's survey of mid-Atlantic manufacturing conditions shrunk for the eighth consecutive month. And provided traders with a reminder of yesterday's noticeably less optimistic view of the economy from the standpoint of the FOMC.
Stocks and bond traded side-by-side today, which is a stray from the norm. However, it can somewhat be justified by comments made by Pimco's Bill Gross suggesting that the markets fear that the U.S. is at risk of losing its AAA credit rating.
From a technical standpoint, the equity markets are teetering on their make or break levels. This combined with holiday volume, trading is tricky and should likely be scaled back or even stopped until Tuesday.
Coming into Thursday, we were looking for a possible pullback to 889 in the S&P and possibly even 886 but didn't expect weakness into the 870's. This leaves us "on the fence" in terms of market direction from here. If I had to pick a side, I would be cautiously and slightly bullish. Today's close in the June futures at or near our critical 889 leaves tomorrow highly uncertain but we do think that an overnight or early session rally extending to 902 is probable. The pivot point in the Dow is 8,293 above it the bulls have an edge and below the bears do....sidelines seems like the only comfortable position from here.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.