June 8th, 2010 Posted in Uncategorized
Good Morning
Equity index futures are trading higher this morning despite continued worries abroad. The fear isn't new to us in that we've gone through this already. But the idea of a financial system collapse as a result of bad loans is weighting heavily on Europe and in turn weighting heavily on us.
However there are some positive signs of sustained employment and government efforts to trim government "fat" for Europe. This seems to be easing fears.
Domestically, for the second week in a row, same store sales rose 0.8% w/w and 0.3% y/y. Sounds great but still tame.
Trading Levels
As I write this, ES M10 is trading 1052.75 and TF M10 is trading 621.20. Both are up modestly relative to the swings we've been having. Today will be interesting day in that my signals have equities trading in severely oversold conditions, yet the trend and condition of equity markets is bearish.
On 5/25/10, ES M10 and TF M10 made intraday lows of 1036.75 and 615.60 respectively. Yesterday both these indexes closed above the 5/25 intraday low however they closed on their lows, typically a good sign selling will continue. If we trade down to and close under the aforementioned intraday lows, equity markets can get much uglier than they have been.
The positive is that ES M10 and TF M 10 are trading just under their respective daily Pivot listed below - 1055.08 and 624.43. Why positive? Well as I mentioned, we're oversold and much of the trading activity has been driven by technical analysis. If those same TA traders recognized my Pivots and we trade above 1056 and 625, we should close positive today. But again, take what the market gives you.
If you have questions or comments regarding my information, I ask that you contact me directly via email at ruria@manducatrading.com or toll free at 866.312.4965.
Happy Trading - Rob
| Daily Pivots | 6/8/10 | ||||
| EQUITIES | R2 | R1 | PIVOT | S1 | S2 |
| ES M10 | 1078.83 | 1063.17 | 1055.08 | 1039.42 | 1031.33 |
| YM M10 | 10037.00 | 9914.00 | 9851.00 | 9728.00 | 9665.00 |
| NQ M10 | 1863.17 | 1829.08 | 1811.42 | 1777.33 | 1759.67 |
| TF M10 | 647.33 | 632.17 | 624.43 | 609.27 | 601.53 |
| ENERGIES | R2 | R1 | PIVOT | S1 | S2 |
| QM N10 | 73.37 | 72.41 | 71.52 | 70.56 | 69.67 |
| QG N10 | 5.06 | 4.99 | 4.87 | 4.81 | 4.69 |