Morning Commentary and Tuesday’s Trading Levels

May 25th, 2010 Posted in Uncategorized

Good Morning

Last I updated this post, I was a little upset because I found it incredible that CNBC and its personalities can say whatever they want and basically advise the investing public with zero liability. This morning's terrible reaction to problems in Europe is a perfect example why.

Basically when the world markets and economies are falling apart, they're on their televised soapbox encouraging you step in front of a "falling knife". They speculate and pass those speculations to investors who have become reliant on their advice. Why? Not for your investing success but rather their ratings.

I wish they would have the young female analysts they had on last week telling you to buy last week's dip again to defend her recommendation. Or Abby Joseph Cohen who was doing the same for that matter. It always cracks me up when I open my financial paper and see Cohen and Joe Battipaglia as featured speakers at investment seminars. I don't think they're been right about anything in the last decade.

Equities

There is no doubt we're still in a correction. However this will be a telling day. Although today's action won't change the immediate trend, it will determine whether this correction moves from a 10-15% correction to a 15-20% correction.

Based on fundamentals and revised earnings forecasts, it is my opinion that US stock markets are cheap. In fact I think they are very cheap however it doesn't mean that they can't get cheaper. Equities markets are efficient and will find a level where technicals match re-evaluated fundamentals. When I see that point I'll let you know.

Trading Levels

The pressure being put on equities and commodities this morning has taken many of my levels out of the picture today. We are trade well below S2 levels.

I don't publish my 3rd range of Support and Resistance. However for those interested in speculating on picking a bottom today, S3 for ES M10 is 1045.33. S3 for TF M10 is 620.73.

If you have any questions or would like more of the levels that I don't publish please feel free to contact me via email at ruria@manducatrading.com or toll free at 866.312.4965.

Good luck!

Daily Pivots	5/25/10
EQUITIES	R2	R1	PIVOT	S1	S2
ES M10	1095.17	1082.83	1076.42	1064.08	1057.67
YM M10	10227.33	10133.67	10084.33	9990.67	9941.33
NQ M10	1850.17	1830.83	1820.67	1801.33	1791.17
TF M10	657.47	648.53	643.57	634.63	629.67
ENERGIES	R2	R1	PIVOT	S1	S2
QM N10	4.17	4.12	4.09	4.04	4.01
QG N10	71.30	70.78	70.30	69.78	69.30