Daily Trading Advisory SAMPLE REPORT
DAILY TRADING ADVISORY 05/10/2007
ECONOMIC CALENDAR
Weekly Initial claims
Trade Balance
WEEKLY BULLS AND BEARS SENTIMENT
BULLS 32%
BEARS 42%
No more than a soft adjustment in our Bulls and Bears sentiment.
No more than a neutral position in this week market.
FOMC POLICY STATEMENT
As expected not changes on the Fed policy, a concern for a higher core inflation and a weak housing market, kept the interest rate unchanged, my prediction is that a hike is in the way in the near term future.
People buying stocks on the expectations of a rate cut, will get cut.
DOW JONES
A lower opening was bought and the Dow played on the unchanged area for the first two hours of trading, a soft rally reached the 13440 level before the interest rate decision was announced, too much confusion for people who were expecting a hawkish language created a little bit of volatility, just enough to keep this rally going on uncharted territory. The index closed at all time highs reaching 13362 points.
This has been a huge rally and will likely face a retracement or congestion pattern before a new leg up is seen. Even I maintain my objective for this last leg at 13440, the 13275 area should be monitored closely, trading bellow this level could spark a 300 points retracement
SP and NASDAQ FUTURES
A great trading day for our subscribers as the market moved almost exactly to our support and resistance levels, BRAVO. After moving lower just above our first support 1508.00 the market inched higher to the 1515.50-1516.50 area before the Fed announcement. After the release of the Fed’s decision, that caused a little bit of disappointment the market made new lows for the day but rally back to the 1518.50- 1519.75 resistance area reaching its daily high at 1519.00 on the emini and 1518.80 on the big contract, JUST ON OUR LEVEL, then it traded back to test the new support at 1515.50 just to rally back and print a double top on the charts before softening and closing bellow fair value. At this moment the market looks range bounded with a slow upward bias and nothing bad will happen all the time that the 1510.50 and 1508.00 support areas hold on the SP and 1903.50-1902.00 levels stops an early selling on the NASDAQ. Keep in mind that the patron of the last days has been an early sell of followed by a reverse to resistance and be sold before the day is over just to close between the range. If these levels do not hold, we should test the 1505.50-1504.50 area on the SP and the 1898.00-1896.00 on the NASADAQ. If this cannot stop the market from falling then the trend may be rolling and we can see 1501.50-1499.50 in the SP and 1890.00-1898.00 on the NASDAQ.
On the other side if the market decides to trade higher the first obstacle is yesterday late resistance at 1515.50on the SP and 1912.00 -1914.50 on the NASDAQ. From there if I don’t see the market trading above yesterday highs I will be selling with small stops.
Keep in mind that tomorrow we have the PPI and Retail sales data that should be crucial to maintain this bullish pace on the markets.
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TODAY SUPPORT, PIVOT AND RESISTANCE LEVELS |
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S&P
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NASDAQ
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Resistance 3
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1526.00-1528.00
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1928.50-1931.00
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Resistance 2
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1522.50-1523.00
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1921.00-1923.75
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Resistance 1
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1515.50-1516.50
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1912.00-1914.50
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PIVOT
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1510.50
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1903.50
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Support 1
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1508.00
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1898.00-1896.00
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Support 2
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1505.00-1504.50
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1892.00-1890.00
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Support 3
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1501.00-1499.50
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1883.00-1885.00
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S&P FIBBONACCI NUMBERS
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NASDAQ FIBONNACCI NUMBERS
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1535.60
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1943.70
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1527.30
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1931.50
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1522.25
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1923.95
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1519.10
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1918.20
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1514.50
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1911.75
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1508.90
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1904.20
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1505.75
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1899.50
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1500.65
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1892.20
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1497.50
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1879.80
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