Hello All,
 
The big news of the day was pegged on the health of the European banks as the stress test results weren't as transparent as initially announced.  What else would you expect when the banks were allowed to rate themselves?  As investors moved towards safer assets we saw a rise in treasuries, the US dollar, and more notably a new 15 year high on the yen.  Volume was significantly light and should continue to be the case the rest of the week with the Jewish holiday Rosh Hashanah on Thursday/Friday, which means tomorrow could technically be the last active day of the week.  The path of least resistance given the current circumstances seems to be lower or sideways at the least.  The 1100 level on the S&P has once again proven to be an important level upon crossing, and the rally last week may have just been too much too fast on the 'better than expected, yet still horrible' payroll data; and if the market continues on this path, I doubt the 1040 support level will stand much of a chance this time around.  As equities fell, and the dollar rose, Crude prices settled slightly lower on global concerns, and the only thing that kept prices from spiraling downwards was an explosion at a refinery in Mexico near the U.S. border.  With crude stockpiles at 27 year highs and the economic outlook for demand growth not looking too great in the near future, you have got to love these fundamentals.  API data is set to release tomorrow afternoon and the DOE data will be released Thursday morning due to the abbreviated week.  Once again, the path of least resistance seems to be lower to close out the week, and we may be on the path to technically test the $70 level.  Circling back to the Euro, globally it's a matter of which currency stinks the least, and a flight to quality is evident as Gold is within an arms reach of making a new record high.  I personally feel todays drawdown in the Euro was overdone, but necessary to reset the tone of our global recovery back to cautious after last weeks sugar-coated rally.
 
1)  Sell Sept Emini S&P at 1091.50, with a 1104 stop.  Exit to be determined below 1040.
 
2)  Sell Oct Crude Oil at the market (73.70), with a 75.30 stop.  Exit near $70.
 
3)  Euro Currency, stand aside.  Possible buy zone around 1.2650 if the market can hold fairly steady overnight.

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Best,

Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
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*There is a substantial risk of loss trading futures.  Past performance is not necessarily indicative of future results.