1.06.09

Oil continued higher overnight on the belief that OPEC production cuts will eventually take hold and that the Russian  gas dispute with the Ukraine will not be immediately resolved. Also, the Isreal/Hamas conflict enters its 11th day. Stocks are higher on momentum and the belief that the stimulus program will work. Dollar is strong. Rates are backing up as supply starts flooding the market.

Current views, speculations and suggestions

Mar Yen: neg with res at 108.65
Mar Swiss: negative with res at 92.50
Mar EC:  neg with res at 138.30
Mar Canadian: positive with support at 82.45
Mar BP:  neg with res at 148.00
Mar ES: positive with support at 909.00
Mar NQ: positive with support at 1231.00
Mar Russell: pos with support at 495.50
Mar Mini Dow: positive with support at 8842
Mar Silver: positive with support at 10.10
Feb Gold:  potential reversal day (down)
Feb crude:  positive with support at 44.10

Longer term spread idea: from 12.22 we are long April crude at 44.90 and short Dec crude at 52.50 for a differential of 7.60.  Today buy April at 50.00. If filled, sell a Dec against it.

Mar Soybeans:  pos with support at 9.71
Mar Wheat: positive with support at 6.02
Mar Ten Year: neg with res at 125.11

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International Markets

Mar Euro Bund: positive but below daily support of 123.65
Mar Dax: positive with support at 4954

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N.B.: if you initiate a trade using any of these numbers use a stop at least equivalent to 2 ½%. Repeat: use stops. Don’t think about using stops. Use stops.

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.