Thursday’s Trading Levels

July 8th, 2010 Posted in Uncategorized

Good morning Traders

Isn't this summer heat great?! I'm sure they think so on the east coast.

Yesterday I noted some signs that there could be a "modest intraday rally in equities". Well it wasn't so modest and when the buy programs kicked in after 2 pm CST, the Bears were running for the exits as the short squeeze was on.

So was there any substance to yesterday's rally or was it nothing more than a Short Squeeze? I think it was a little of both. When you look at the Risk Free Rate, Treasuries, you'll realize the return is horrible making yields on corporate bonds and equities much more attractive.

However, yesterday I also mentioned that the lower trending Dollar was helping support equities. It still is and yesterday's intraday fall near 12:30 CST was prime example of the inverse relationship the Dollar has with the stock market. As I write this DX U10 is trading flat at $84.015. My view is that this market can fall to the $82.00 level before finding support. That's short term bullish equities and commodities.

Trading Levels

Below you'll find today's trading levels. Due to yesterday's big range, today's numbers will be difficult to use. But I can tell you that yesterday's closing prices settled above their respectively Weekly Pivots and more importantly above their Weekly R1. I expect this rally to continue ahead of next week's start to earnings season.

If you have any questions or comments regarding this blog, please feel free to contract me via email at ruria@manducatrading.com or toll free at 866.312.4965.

Happy Trading - Rob

Daily Pivots	7/8/10
EQUITIES	R2	R1	PIVOT	S1	S2
ES U10	1082.92	1071.08	1047.92	1036.08	1012.92
YM U10	10182.33	10080.67	9881.33	9779.67	9580.33
NQ U10	1825.75	1807.50	1771.25	1753.00	1716.75
TF U10	628.10	620.40	605.20	597.50	582.30
ENERGIES	R2	R1	PIVOT	S1	S2
QM Q10	75.48	74.78	73.63	72.93	71.78
QG Q10	4.73	4.65	4.60	4.52	4.48