• Home ::
• Fundamental ::
• Market View ::
• The Dow Futures Report

• Send
• Print
• Add To
• Rss

The Dow Futures Report

60677b58-2460-4c79-aece-946a6ad80998

0

0

Quietly Higher

Tue, Jun 17 2008, 10:34 GMT
by Carley Garner

Alaron

**I was recently interviewed by Stock Shotz!! Visit YouTube.com and search Carley Garner Stock Shotz to listen.

New high in oil, but that wasn’t necessarily a surprise. Also not surprising, however, was that after shaking equity investors and squeezing out the shorts, crude oil dropped sharply to reach a daily low of $132.84. This was a far cry from the day’s high of $139.89. As long as crude oil remains volatile and overpriced (opinion), stock traders and investors will continue to focus on trading in the energy pits. There seemed to be little explanation for the price reversal other than technical trading. Although, Saudi Arabia’s weekend decision to boost production and to Tuesday’s expiration of crude options likely played a part in the decline.

Despite progress made in the previous two trading sessions, the major stock indices still seem to be oversold with the Dow being the laggard. It seems as though there were, and still are, a lot of short positions in this market. We all know that the only way to exit a short position is to buy and I am not convinced that all of the shorts have covered that would like to.

A bounce in the September Dow futures should extend to 12,450 and perhaps higher. Remember, markets don’t go straight up or straight down. Even in a bear market, if that is in fact what we are experiencing, there will be large bounces. For reasons such as this it is important not to marry your stance (or position). Unless you have extremely deep pockets, it likely doesn’t pay to be overly bearish or bullish; instead try to be objective and go with the flow.

The Nasdaq on the other hand has traded healthy relative to the Dow and seems to be facing resistance near 1996. The next area of resistance will be found at 2061. We were recommending buying this market on Thursday but a conservative limit order on entry caused prevented getting filled on the buy. Cancel this order.

You should be trading the September futures contracts by now, if you are holding June positions roll them over immediately as liquidity will soon become an issue.

Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.

Dow 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 Recommendation

**There is unlimited risk in naked option selling and futures trading

Position Trade –

June 12th – Buy 1 September Mini Nasdaq (this can be done with a big contract) at 1923 using a tight stop. Contact me for ideas.

• * We missed this one…would have been nice, cancel this order.

Published on  Tue, Jun 17 2008, 10:45 GMT