E-mini S&P:
On Tuesday we had a dramatic sell off in the S&P market that was supported by both Bernanke’s testimony that the economic recovery was taking much longer than anticipated, as well as major resistance in the market not being breached. With such a dramatic move to the downside, the question should now be how low we can go. Technical patterns are showing a major level of support around 1040.
Fundamentals in our economy our showing extreme bleakness as jobless claims rose to the highest levels in the past 6 months. The major level as I mentioned being around 1040 is due to be tested and if broken should lead to another major test at the all important 1000 psychological area.
Euro Currency:
As I predicted in my earlier article, a 500 point correction on the euro was inevitable. The 500 point correction could now even be squeezed out to 700 points to test a lower retracement level. 1.2600 is the first area that should be a problem for the market, which is over 700 points. Getting short this market and holding on for the ride, which should be a bumpy one, is something that shouldn’t be overlooked.
Live Cattle:
The technicals on this market are putting my mind at ease along with my fundamental backing of the global supply and demands. We are well above all major moving averages on the daily, and holding well positive on my other indicators. Now, to support all these factors, we are dealing with Argentina, which is a very large exporter of cattle and the largest consumer of beef, has rumors out there of limiting production over 50% in the upcoming months. Depending on capital there are a variety of limited risk approaches to capitalizing on my anticipated push above $1.00.
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Thank you,
Patrick Vahid
Senior Trading Analyst
877-327-7346 x231
*There is a substantial risk of loss trading futures. Past performance is not necessarily indicative of future results.
