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Trading Levels for the Week Starting Aug 9, 2010

August 9th, 2010 Posted in Uncategorized

Below you'll find today's and this week's Pivots and Trading Levels. If you have any questions or comments, I encourage you to contact directly via email at ruria@manducatrading.com or toll free at 866.312.4965.

The Dog Days of summer are upon us and the next few days will be no exception as we await the Fed's announcement on the economy and interest rates tomorrow at 1:15 CST following. Expect trading volume to be even more muted until then.

Trading Levels

We'll also get a peak at inflation with Tuesday's report on Productivity and Cost (due 7:30 CST) and Friday's CPI (due 7:30 CST).

ES U10 and TF U10 are trading at critical levels in my opinion. It's my contention that TF U10 leads the stock market because it represents growth. When indexes like this one and the S&P Small Cap are trading in a bullish trend, it usually means that the economy is healthy. However, TF U10 is lagging ES U10.

The fact that this lag is occurring at critical resistance levels, 1130.00 for ES U10 and 665/670 for TF U10, concerns me. The question here is: What catalyst will cause ES U10 to trade and close over 1130.00? The positives, good earnings and low rates, are evident. But so are the negatives.

That being said, ES U10 is set to open the week below its R1 of 1126.13 and TF U10 should open below its Weekly Pivot 655.91. The lag relationship is still in tact. I expect both indexes to trade above these respective trading levels. If this happens, I'll use this opportunity to Sell.

Again if you have questions please contact me.

Daily and Weekly Trading Levels

Daily Pivots 8/9/10
EQUITIES R2 R1 PIVOT S1 S2
ES U10 1131.42 1125.58 1114.67 1108.83 1097.92
YM U10 10717.33 10667.67 10570.33 10520.67 10423.33
NQ U10 1928.67 1917.08 1894.17 1882.58 1859.67
TF U10 662.57 656.43 646.77 640.63 630.97
ENERGIES R2 R1 PIVOT S1 S2
QM U10 83.03 81.87 80.96 79.79 78.88
QG U10 4.71 4.59 4.52 4.40 4.33
Weekly Pivots
Starting 8/9/10
S & P 500 R2 R1 PIVOT S1 S2
ES U10 1130.67 1126.13 1118.97 1114.43 1107.27
SPX 1133.73 1128.97 1121.46 1116.69 1109.18
SPY 113.55 113.09 112.40 111.94 111.25
OEX 514.83 512.83 509.68 507.68 504.53
DOW JONES R2 R1 PIVOT S1 S2
YM U10 10696.07 10657.93 10599.67 10561.53 10503.27
DJIA 10747.43 10705.69 10635.52 10593.78 10523.60
DIA 107.42 107.08 106.53 106.19 105.64
NASDAQ 100 R2 R1 PIVOT S1 S2
NQ U10 1918.32 1909.33 1895.62 1886.63 1872.92
NDX 1918.08 1909.83 1896.76 1888.51 1875.44
QQQQ 47.17 46.95 46.63 46.41 46.09
RUSSELL 2K R2 R1 PIVOT S1 S2
TF U10 666.91 661.69 655.91 650.69 644.91
RUT 666.10 661.67 656.98 652.55 647.86
IWM 66.79 66.26 65.70 65.17 64.61
CRUDE OIL R2 R1 PIVOT S1 S2
QM U10 83.07 82.44 81.74 81.11 80.40
USO 37.28 36.96 36.63 36.32 35.98
NAT GAS R2 R1 PIVOT S1 S2
QG U10 4.85 4.75 4.68 4.58 4.51
UNG 8.18 8.00 7.86 7.68 7.54

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