Tuesday, December 14, 2010

Emini Futures Trading / Prices Higher - Employment Dismal - Recovery On Track


from the trading desk of CFRN...

RETAIL SALES, FOMC, PPI, oh my! To start the day the SP EMINI’S were trading slightly higher from the strength in the European and Asian markets. The highlights of the day were Retails Sales, PPI and the FOMC meeting. Despite Best Buy (BBY) disappointing the street with a disappointing loss in the 3rd Quarter, Retail Sales showed a 0.8% rise in the month of November beating analyst expectations. On the wholesale front the Producer Price Index (PPI) rose 0.8% largely due to an increase in energy and fruits. Taking out food and energy (core PPI) which is closely looked at by the Fed came in more subdued and offset any fears of inflation. Things that make you go HMMMMM…….Gasoline prices are going higher, food prices are going higher(grains and soft’s), cotton to make clothing is going higher and my health insurance is going higher; so the things that YOU and I spend money on everyday to get to work, to dress and feed ourselves doesn’t count????? With the morning reports out of the way the SP EMINI floated higher in anticipation of the Fed announcement. We didn’t expect any major changes but sometimes you have to play defense going into that report “just in case”. As expected, rates were left unchanged and the 600 billion in QE2 was affirmed. The Fed did say that the economic recovery is slowly on its way but not on a pace to bring down unemployment. All this said, the SP EMINI chopped, dropped to the Weekly Pivot and found a way to finish the day in the green. Wow a lot of huffing and puffing to create a 10pt range. 

S&P 500 Emini Futures / ESH1
On the technical front:

There is a double top in the SP EMINI on the hourly at 1242.00 our Weekly Trading Zone. Aggressive traders could try selling this market knowing their risk would be defending that high. If that high is broken I think the door will be wide open to the 1246.00 level and potentially to the last WTZ or the 1251/1252 level in the MAR SP EMINI. If we stay on the path that we're on, I see support at the 1230/1231 WTZ. A close below that Zone would confirm a short term move to either the 1230 level or the 124/1225 WTZ which I would then view as a “buying opportunity”.

Stay alert stay alive!
B. Schlichter

The only preparation for tomorrow is the right use of today. - Unknown

Market Profile Numbers for 12/15/10
VAH -  1241.00
POC - 1240.50
VAL -  1237.00

Off The Record
As you know, we swore off Equities some 5 years ago. For those of you who were around 5 years ago and followed our CFRN Investigative Series,  we exposed corruption and greed from Wall Street to Capitol Hill to Main Street. From the SEC, to the DTTC, to the Fed, we laid it out for all the world to see. From Mark Faulk, to Bud Burrell, to Rod Young, to Patrick Byrne, to our dearly departed friend Darren Saunders, they all found a voice on CFRN long before they testified at the very Senate hearings created to shut us up. Over hundreds of hours of radio broadcasts, we exposed, documented and archived "the circle of greed" yet nothing changed. Oh wait... yes it did. The Uber Rich got Filthy Rich, many politicos became the Uber Rich, your 401K got decimated, your house is now worth pocket change, and chances are you don't have a job, a 401K, health insurance, or hope.

How's that for the Hope and Change you were promised?

(Sidebar: Amidst all the angst we screamed equally as loud to "Buy Gold". Right?)

So why do I bring up such a sore spot on a sleepless night in Phoenix AZ? Well... our dear friend David Williams has made some good points over the past few days. The S&P futures have been a major snooze-fest whilst some individual equities have done quite well.

I ran through the Nasdaq 100 and made it as far as the letter G. If I don't stop now and catch 40 winks there will be no broadcast tomorrow. I did see some stocks I like for further upside potential, I also saw some that really seem to have run their course. I'm publishing the following list not as a Buy or Sell recommendation but to simply show you what I like and dislike from a purely technical perspective. I also want to invite David to peruse the list and see if there are any stocks we agree on. If we do agree on something you might want to take a closer look yourself. Just never forget why I left the world of market makers, front runners, bashers, pumpers, dumpers and crooked CEO's. Their license to steal has been upgraded.

Other than that... enjoy the list and certainly feel free to offer your own feedback during tomorrow's broadcast. Michael will be out tomorrow morning so I'm considering a bit of an open-mic format. Message me if you want to partake.

SYMC (quite a bit)
CSCO (consider a buy @ 21.50 on a stop)
GILD (consider a buy @ 38.25 on a stop)


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