February 25th, 2010 Posted in Uncategorized
Good Morning Traders
Looks like we didn't get the follow through from Tuesday's Tank yesterday. Instead, equities rallied after paring an early loss. They traded more like the Thursday scenario I noted yesterday than Wednesday's.
Yesterday I also wrote:
They're striking and rioting in Greece as a negative response to their government's attempts to fix their economy. If this situation escalates, and I'm sure it will, the Euro may get hit pushing the Dollar higher. This will put pressure on already sensitive equities. (Pivot for Profits, 2/24/10)
As I write this, ES H10 and TF H10 are down 14.50 and 6.60 respectively. Why? The mess in Europe sparked selling there and in Asia. I'm also reading that investors may be concerned that India's new budget will contain measure to ease growth, through taxes or just less stimulus. These concerns are bidding the Dollar and in turn, hitting equities. DX H10 is $81.13, +0.215.
Also, look for tech to get whacked. PALM was downgraded by 3 firms over earnings concerns. This should hit RIMM which is 1 of the Big 3 that moves the NASDAQ.
On the Economy ...
Durable Goods came out better than expected with at rise of 3.0% vs 1.3%. Jobless Claims rose more than expected to 496K vs 460K. Jobs will be the focus here. The economy is stagnant at best.
Energies
QM J10 rallied yesterday. In that respect, I was wrong. However I identified an end to the upward trend. Given Dollar strength today, we're seeing that continue to develop. I see this market falling back to the $75.00 before finding bids. QG J10 reversed a bit yesterday but also under pressure this morning. Inventories are out at 10:30 EST.
Trading Levels
I got short the R2k yesterday near the close based on the fact all the indexes related to the Russell 2K fell below their weekly R1. We'll see how this works out but I have a target near 600 on TF H10.
If you have questions or comments please contact me directly via email at ruria@manducatrading.com or toll free at 866.312.4965.
Happy Trading! - Rob
| Daily Pivots | 2/25/10 | ||||
| EQUITIES | R2 | R1 | PIVOT | S1 | S2 |
| ES H10 | 1112.67 | 1108.08 | 1100.92 | 1096.33 | 1089.17 |
| YM H10 | 10436.67 | 10396.33 | 10338.67 | 10298.33 | 10240.67 |
| NQ H10 | 1830.75 | 1822.50 | 1811.50 | 1803.25 | 1792.25 |
| TF H10 | 636.33 | 632.17 | 628.23 | 624.07 | 620.13 |
| ENERGIES | R2 | R1 | PIVOT | S1 | S2 |
| QM J10 | 81.28 | 80.65 | 79.50 | 78.88 | 77.73 |
| QG J10 | 4.98 | 4.92 | 4.87 | 4.81 | 4.77 |