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The Report below is to give our insight on various markets that we follow. We also will give specific trades that we are looking at that should last anywhere from 3 to 4 days to 3 to 4 weeks. If you are looking for daily trades, stay tuned to our daily “Trade of the Day” plays.
New Trades: Short September Yen Futures on a 10870 Break.
Update to Trades from Last Week: No Trades Last Week
Update to Trades from 2 Weeks Ago: No Trades from 2 Weeks ago
Market Notes on the Markets that we follow closely:
S&P 500 | DOW | NASDAQ: Another up week for the US Stock market. It has some overhead resistance on the September Contract of the S&P 500 Futures. If you are a bull, I wouldn’t jump for joy too quickly and the summer sloppy lower volume action should keep a lid on any major moves – one way or the other.
Interest Rate Futures / Mortgage Interest Rates: The 10 Year T-Note Futures closed mixed last week and some selling is a good possibility for the next week or 2. The 118^16 to 118^26 area is weekly support for the September Contract. Mortgage rates will probably edge about 1/8% higher on the standard conventional 30 year fixed-rate mortgage over the next 5 days.
US DOLLAR (Symbol: DX): The US Dollar finished sharply lower last week as the market on a technical basis seems to be consolidating its recent gains. Tough to say if this is a fundamental change in the Dollar or just a pause in the bullish action that we have seen since December. There is a Bearish bar getting put in on the monthly charts with some solid overhead resistance… In addition, some of the major foreign currencies are oversold… We wouldn’t be surprised if the high for 2010 was put in last week for the US Dollar. Our opinion at this point is that the highs for the summer have probably been put in… we will wait and see for the last 4 months of the year. We do not expect a return to a bearish trend but the "Bull Bus" may be in the garage for awhile.
Foreign Currency Futures: All the Major Currencies that we follow (Aussie, British Pound, Canadian Dollar, Euro, Yen and Swiss Franc had a bullish week last week. As we mentioned last week, we expected the Euro and Swiss to have a bounce back week in the cards. The only tradable action that we see is the Yen selling off if our break point (10870) is hit. Unlike the other currencies… the Yen tends to often do its own thing regardless of it's "cousins" or seemingly what is going on with the US Dollar and although it had a bullish week last week – it may see some movement downward if the 10870 area breaks.
Crude Oil: Crude oil finished higher last week. We don’t see a tradable play in the charts at this time.
Grains: The 3 Major contracts that we follow in the grain markets - Corn, Wheat and Soybeans all closed stronger last week. All three are looking like they are trying to build up support.
Metals: Platinum, Gold and Silver all finished higher. Although, we will probably miss any legs higher in Gold, We just find the “Gold Bus” too pricey for us at these levels… the gas tank has to be getting empty.
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