Back in the saddle again after a two week trip.. So abiotic crude oil contain Nuclear material, Corexit (corrects it) disperses the oil into tar balls and keeps most of it below the surface of the ocean so no one can see it. Crude oil also contains Benzene which sucks up oxygen so any aerobic form of life suffocates. Here is a question? What happens when gasses float to the surface that are mixed with nuclear material (uranium and throium) and benzene?
Lets start with what each of these elements and chemicals are and then describe the environmental damage they cause.
Using the correct strategy is as important as being right about the trade. here is a brain teaser..
You want to buy 1000 shares or AAPL Apple Computer.. @ 250. What would you do?
1) Buy 1000 shares of stock for 250,000 or 125000 on margin?
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Good trading Good Expiration good roll..
BP Fell to 35.. Target achieved.. Could fall much lower not convinced of that possibility in the short term. When the lawsuits get worked out that is when the damage will be done. IMHO.
The EUR/USD cracked new low's. - Target 116 area
And the S&P 500 is much lower. Target on S&P is 987.
Finally feeling human again after last week was fighting a nasty cold/flu. All better now and back to the markets.. Going forward for the next week and into the summer I do not think it will be dull trading at all. Here is what I am looking for this week and much further out for is somewhat of a coin toss as the easy money has been made from the 2007-2009 crisis. The Fed is pulling back it's liquidity in a big way at home, they may be writing trillion dollar checks to Europe via swaps however those dollars are not for us. You may notice in your neighborhood things getting bought up wholesale by funds... IMHO that is where those dollars are going. And to prop up the Stock index futures via JP+ GS.. Which leads me to the first chart of the evening the June E-Mini S&P Contract trading hi of 1101 and a low of 1079.25 on this Memorial Day Holiday. Major support/resistance levels are 1113, 1100 1089/1087 area and maybe 1067. The real test is the 1040 to 1020 level. If those break 987 will be here before we know it. The bear will be in full control by then. I expect the selloff's to be quick and decisive and the rally's after the sell off to be quick as well. The action in between will most likely be choppy IMHO. Looking for an up Monday pattern and into the first half of Tuesday. I think the positioning for rollover will begin later in the week and this is triple expiration this month. I will trade what I see, the crystal ball says test 1069 and bounce to 1089 maybe 1100 and then retest 1040 and if that fails 1021 then a sharp fall to 987. At that point in time will be looking @ the 1998-2007 charts again for potential areas trade.
One of the key's to broad market sentiment is the advance decline line or the "issues". Please note the hi and low of this manic market was within 3 issues... so lets say a reading of +/- 1500 is neutral. So I want to sell 1089 1102 on the /es and but 1035 and 1042 and do some scalping in between. Will keep an eye on the oil patch and the indexes and look for a higher probability trade. There is more don't have time to list it here right now... Check it out below and good trading. I would like to pair up some of these posts with a seasoned currency trader to make this more interesting. Please send a message if interested. Check it out below!
Took off the first part of the trade here earlier on expiration day looking for a bounce. This dog after looking closer has more to go down.. Here is why I think that is the case..
with VWAP-Trending down,
OBV (on balance volume) pointing straight down and
The indexes are testing new lows and are at critical junctures at these levels. Thought the Nasdaq would get some liquidation and the SP500 would be a bit stronger as the momentum has favored the Nasdaq vs the SP500. That was the "basis" behind the trade.. A bit random yes, opportunities are everywhere, the interesting part of trading is when the bus does not stop for you check in see if you are ok and make a detour.. If the trade passed you by have to find the next one... Lately, there are tons of buses to hop on and go for a ride.
The EUR/USD pair seems to have fallen below inital levels and is making new lows here.. AND until the is a spike in Volitility and the ensuing collapse in volatility.. We go lower..
How about another TRILLION$$ intervention to get this to PAR with the USD... ??
Lets see how this acts @ the 1.2400 level.. Would not be suprised to test the 1.2513 level and see a bounce in the SP Futures and oil and then a continuation down of SP futures, EUR/USD and oil test $65.00 before oil resuming it's path to 100 late this summer when all OFFSHORE oil drilling is banned by TPTB (the powers that be) in a really dumb decision that cripples the already fragile energy situation the USA is facing in the not so distant future. Pictures are below and note the price levels and that there is some energy to test the upper line here at the 1.24/1.25 level. A break below 1.22 and look out below.. Isn't summertime trading fun?
How some SP Futures...