Emini FuturesCast / The Daily Pod 06/22/11

by DeWayne Reeves

Our equipment upgrade is underway. The hardware is in place but we need to complete some software tweaks and run a few audio tests. The good news is, the Radio Stream is back up and we may have a green light on all levels in time for tomorrow's Live Broadcast.

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Either way the show will go on! Tomorrow night is the weekly CFRN Partner's Meeting @ 9PM EDT. If you are currently on the Free Trial and would like to attend, contact tech@cfrn.net for details. Thursday nights are a Partners Only event but there's still time to grab a seat. Email Michael tech@cfrn.net

from the desk of Michael

We were hesitant to get right into the corn after it opened up 16 cents from the settle yesterday.. putting it halfway into a limit up position on the day. The overnight session gave it a nice push up and we were unsure of the type of retracement that was likely to happen.. After letting it consolidate a bit we identified a range and put our orders on both sides of the range expecting a nice trend to happen in one direction or the other. We were rewarded for our patience while we let the market struggle with itself until it finally made a decision to head down. We were triggered into the sell stop order that quickly gave us 4 cents ($200 per contract) on a short position. The market had a great deal of momentum and quite a ways to go to be limit down so we searched and found another shorting opportunity. We did not have to wait long. Our sell stop was filled and we took our second 4 cent ($200 per contract) gain. The corn market ended limit down and has continued to drift downward in the overnight session so far....

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E-Mini S&P 500: The post Fed plunge plods on! 

“Soft patch” equals soft pronouncement of the fiscal economic plans of the Federal Government and the path of economic recovery!  Federal Chairman Ben Bernanke reigned in the GDP forecasts for Friday, recapped the very slow and tepid economic recovery in his testimony today summing up the two day FOMC. He remarked that the labor sector is weaker than expected coupled with higher food and energy costs. Japan’s earthquake played a small role in delayed production and shipment of auto and tech parts that would boost sales. Household spending seemed to expand while the housing sector is still weak. The key ingredient to recovery is still the employment area with increased production and exports. QE2 will end June 30th and no further plans have been mentioned toward QE3.  The Quantitative Easing may have contributed to the stock market advances, but it has not proven to supply more jobs or facilitate the recovery. It is expected that the second half of the year will be more productive with increased employment, but the chatter has no data to attest to the commentary. The Fed is still on course with their extended period policy commitment. Fed Ex Corp. was up 3 % to $91.84. The shipping firm often is viewed as a barometer of business growth

The Euro Zone was put at ease for the moment as the austerity program was voted on in parliament taking the majority vote! The austerity programs are typically not well received, but was necessary to obtain the bailout of $12 billion euros to potentially prevent default. The bailout may still be received with a default to follow. The Euro Zone evaluated the consequences of a potential default and perhaps may weather such an event should a default come to fruition. The French Banks would possibly be the most vulnerable, but they still may be prepared to forgo a catastrophe. While the Euro Zone is fragile and vulnerable to contagion fears, they are meeting to go through these scenarios to be prepared for the worst case.  

While a resolve for the financial woes of the  world alludes us for the moment, the market dictates a sentiment!  The sentiment to a trader is an opportunity to use yet one more filter in the culmination of the next trade. 

Thursday, we look forward to the Initial Jobless Claims at 7:30 AM CST and New Home Sales at 9:00 AM CST.

Thursday, what to expect!  We are technically in buy mode on the Daily Chart! We still may experience some spike downs in establishing that bottom. Thursday, we look for an inside to lower day! Today’s range was $1293.75 - $1279.50. The market settled at $1279.75. Our comfort zone or point of control for this market appears to be $1286.00. Our anticipated potential range for Thursday’s Trading could be $1293.50 - $1262.50. The market stays bullish above  $1254.75. The poor close today perhaps gives little inspiration to the bulls for tomorrow’s trading day!

Leslie Burton
Senior Market Strategist

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