The major indices flat-lined in the midst of lousy housing data and ahead of a calendar chock full of risk. Traders are focused on the jobs numbers because that, along with housing, has been the anchor on the recovery. We will get a glimpse of the employment picture with tomorrow's ADP numbers but the real deal will be Friday morning. I can't help but feel as though even good numbers will have a hard time keeping the market afloat. It has been a nice run, but a correction seems to be in the cards.
Pending home sales numbers were horrible (down 16%) and the carmakers reported sales declines in 2009. It was the worst year for the auto industry (and taxpayers) in nearly 30 years. Ironically, each of the three U.S. auto leaders claim that they have momentum going into 2010...cash for clunkers 2?
The dollar was essentially unchanged, but our charts are telling us that the greenback could hold support near 77.40. If this turns out to be accurate, we feel as though the buck will make a move toward 80 and this will put pressure on the equity rally.
Seasonals and technicals are all "calling" for a top. We think that the S&P will run out of steam near 1140ish (maybe as high as 1150) but are becoming bearish. Similarly, the NASDAQ could see 1900 or a little above, but we like the short side of the market. Be a wise bear...don't go all in! A little something is better than all of nothing.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
December 28 - Sell 1 mini NASDAQ near 1879
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
www.CarleyGarnerTrading.com
www.DeCarleyTrading.com
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
