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Today’s and This Week’s Trading Levels

May 17th, 2010 Posted in Uncategorized

Good Morning

I hope you had a great weekend. I'm finally back up and running after suffer a crashed modem that kept me offline for most of last week.

On May 3rd, I stated " ... although the resiliency of the stock market has been impressive, I think the upward trend that started in mid February is over." At the time, ES M10 and TF M10 were trading 1189.00 and 720.00 respectively. Although we've bounced off the subsequent lows since my call, I still feel we're in a correction.

Equity index futures are at a point where if they were to fall today, I would expect a test of the lows set a couple of Thursday's ago that led all those in the "know" to proclaim that day's trading action a result of an error. An error that no one could identify for days. Folks, that doesn't happen in this business. If there is an error in this business of any magnitude, people know about it immediately. Of course we know now that it was a money manager who unloaded 75,000 e-mini contracts at market.

What's to learn from this ... we people start running for the exits, the bids won't be there. You've been warned.

I don't want to go off on a tangent because equities really are at a Pivot Point if you will. Despite strong corporate balance sheets, the real economic risks around the globe are threatening hopes of a true economic recovery here and abroad. I don't want to be gloom and doom because I believe in the long run, the United States economy will be fine. However this correction could get ugly before things get better. Between Bulls and Bears there is no clear winner as of yet.

As far as trading ideas, I'd be selling all rallies using my levels below.

Energies

Front month for Crude Oil now July. Nat Gas contract will roll to July by end of week.

For those of you looking to get long crude (QM N10) or natural gas (QG N10), I think you can start looking for your entry point now. QM N10 could trade down to about $72.00 for a good risk/reward trade. I'll be looking to play the breakout on QG N10 at 4.60.

Below you'll find my trading levels. If you have questions or comments feel free to contact me via email at ruria@manducatrading.com or toll free at 866.312.4965.

Happy Trading! - Rob

Daily Pivots 5/17/10
EQUITIES R2 R1 PIVOT S1 S2
ES M10 1160.58 1147.92 1135.83 1123.17 1111.08
YM M10 10815.33 10711.67 10610.33 10506.67 10405.33
NQ M10 1954.25 1932.00 1907.50 1885.25 1860.75
TF M10 713.60 704.50 694.60 685.50 675.60
ENERGIES R2 R1 PIVOT S1 S2
QM N10 78.83 77.10 76.10 74.38 73.38
QG M10 4.41 4.36 4.31 4.26 4.20
Weekly Pivots
Starting 5/17/10
S & P 500 R2 R1 PIVOT S1 S2
ES M10 1174.35 1164.10 1154.25 1144.00 1134.15
SPX 1181.12 1168.59 1155.06 1142.54 1129.01
SPY 117.90 116.88 115.91 114.89 113.91
OEX 536.29 530.77 525.02 519.50 513.76
DOW JONES R2 R1 PIVOT S1 S2
YM M10 10908.20 10824.40 10741.00 10657.20 10573.80
DJIA 10991.18 10878.93 10751.72 10639.47 10512.25
DIA 109.60 108.75 107.93 107.08 106.26
NASDAQ 100 R2 R1 PIVOT S1 S2
NQ M10 1978.17 1959.23 1939.97 1921.03 1901.77
NDX 1978.67 1960.46 1941.71 1923.51 1904.75
QQQQ 48.50 48.09 47.75 47.34 46.99
RUSSELL 2K R2 R1 PIVOT S1 S2
TF M10 716.43 708.09 698.17 689.83 679.91
RUT 716.55 708.78 700.06 692.29 683.57
IWM 71.77 70.95 69.96 69.14 68.16
CRUDE OIL R2 R1 PIVOT S1 S2
QM N10 81.08 80.07 79.21 78.20 77.34
USO 37.29 36.82 36.42 35.95 35.55
NAT GAS R2 R1 PIVOT S1 S2
QG M10 4.39 4.32 4.23 4.16 4.07
UNG 7.62 7.51 7.39 7.28 7.16

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