Wednesday, January 5, 2011

Morning Madness

  • Futures are currently slight negative
  • ADP employment number destroyed expectations at 297k vs 100k expected
  • Saw a lot of strength in the market after the ADP number release
  • ISM services due out at 9am CST
  • EUR/USD sold off heavily after hitting the resistance line (almost on the dot) at 1.344
  • EUR/USD is now looking at the 150 day moving average and the upward trendline at 1.314, could see a bounce here
  • GBP/USD did not make it to the upper trendline before selling off, now bouncing around support at 1.552
  • USD/JPY has had a big run up blowing through the 50 day moving average and resistance at 82.79
  • If we don't get a pullback on USD/JPY today this market could turn bearish
  • A close above the 50 day moving average would signal some further weakness for me
  • SPX bounced off of breakout levels of 1262 - Bulls need to continue to hold this level
  • Bulls looking to gain 1276 to continue to push this market higher
  • Bears need to retake 1253 price level to start putting in lower-lows
  • Look to tighten stop-losses and begin to hedge with some shorts
  • Also look for possible hedge positions
Stock Watch


CSTR saw a lot of weakness yesterday and hit support perfectly.  A break of this level would make a good short and a good hedge against this market.

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