Looking for the upside breakout over the next two days $ES_F 1390–1407 $study

By : February 29, 2012 at 8:19 am

Around the Globe

    Asia – CLOSED
  • Shanghai (China) -0.95%
  • Hang Seng (Hong Kong) +0.52%
  • Nikkei (Japan)+0.01%

Europe as of 7:55am EDT

  • DAX (Germany) +0.53%
  • FTSE (UK) -0.06%

Today’s Economic News:

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There is a rich agenda of economic news today.  Mostly mixed, but the negative misses were quite minor in nature. The most damaging one being the German price import inflation number.

In the USA there is some premarket news around the preliminary GDP for Q4 2011.  Those are always hard to read as they are so historical.  At 9:42 EST the leaked version of the Chicago PMI will hit the markets and that should establish the trend for the day.

 

Quote of the day:
The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. – Ronald Reagan

 

Current Allocations from our room:

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Performance Month to Date from our room:

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Current Breadth Readings:

 

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The breadth continues to show negative while price holds up and even climbs.  We continue to look for one last push.

 

Market Sectors Year to Date:

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ES SP500 Futures Comments:

Day 46.

 

We can feel the upside tension in the markets and are looking for a little stimulus from the news cycle to get that breakout to the upside that we think can be quite dramatic and would be the exclamation point on the end of this run on sentence!

 

Our short zone sits way up at 1390 today as we think everything above 1376 is inherently unstable to the upside.  On the downside we continue to respect the 1% pullback area which now sits around 1360.

 

We have a wide ranging upside as we look for a buyers capitulation somewhere between 1390 and 1407.

 

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US Dollar DX Futures Comments:

None.

 

TLT Twenty Year Bond EFT Comments:

The TLT thus far is adhering to the upper trend line and made a nice pullback yesterday afternoon.  We watch today for follow through to the downside with a target in the 115 than 113 area.

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