Top Day Recommendations

12.02.08

Another day of superlatives. After last week’s 9.7% rally, the best five day rally since 1933 according to Barron’s, there was yesterday, the fourth worst decline in history. Volatility remains brutal. VIX at 68. 10 year yield objective at 2.62% (yesterday’s low at 2.65%) remains within reach. Stocks are staging a modest rebound overnight on the idea that yesterday was overdone if not overwrought. Light news day. Big 3 back on Capitol (Capital) Hill looking for something, anything. This is deadline day for them in terms of restructuring ideas.

News Releases

Current views, speculations and suggestions

Dec Yen: positive with support at 105.40
Dec Swiss: pos with support at 82.60
Dec EC:  neg with res at 128.00
Dec Canadian: neg with res at 81.40
Dec BP:  positive with support at 146.80
Dec ES: positive with support at 787
Dec NQ: negative with res at 1158.00
Dec Russell: positive with support at 397.00
Dec Mini Dow: positive with support at 790.00
Mar Silver: neg with res at 10.07
Feb Gold:  pos with support at 757.00
Jan Crude: neg with res at 52.70
Jan Soybeans:  neg with res at 8.72
Mar Wheat:  neg with res at 5.52
Mar Ten Year: pos with support at 121.98
Mar Sugar: neg with res at 11.87

International Markets:

Mar Euro Bund: pos but way above daily resistance of 122.20
Dec Dax: potential reversal day

N.B.: if you initiate a trade using any of these numbers use a stop equivalent to 2 ½%. Repeat: use stops.

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Futures trading entails considerable risk and is not for everyone. An account can lose more than its initial investment. Stops are not necessarily filled at the stop level. Past performance is not a guarantee of future results.