August 27th, 2008
Visit http://www.carleygarnertrading.com/ to listen to my latest interview with Stock Shotz!
Stocks higher on durable goods data.
An unexpected jump in durable goods orders put the market on good footing in early trading and it was off to the races from there. Stocks weren't able to close on the highs, but the move was impressive nonetheless. Today's trade puts the S&P back above its key 1275 but the direction from here is all but certain. In fact, I received an email from DT trading an executing broker on the S&P floor that had 'don't trade' in the subject line. Any time that a commission earning broker is deterring you from trading, you should probably take the advise seriously.
According to unnamed sources, there were several large sellers of the S&P futures in yesterday's session and on the open of today's trade. It is unclear as to whether they are still holding short positions but does suggest that the markets will have a tough time sustaining a swift rally.
Durable goods orders were up 1.3% last month despite expectations for unchanged. The previous month's reading was also revised upward. According to Mathew More, economic strategist at Back of America Securities in New York, "It doesn't seem like the credit crisis is impacting capital spending."
News that the FCIC (Federal Despot Insurance Corp.) may need to borrow money from the Treasury somehow when unnoticed. Apparently, due to short-term cash flow pressures caused by reimbursing depositors following bank the Treasury may have to "lend" a hand.
Good luck trying to pick a direction in this market. Momentum is lacking in either direction and if you happen to get caught on the wrong side of a market reversal it can be painful. I think that those that took the week off had it right.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations are based the full sized S&P unless otherwise noted.
S&P Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.
Dow Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trade Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
August 1 - If you took our advice, you would be long the September e-mini NASDAQ 1670 puts for about 20 points or $400.
August 12 - Not off to a great start, but things may begin to look better from here.
Carley Garner
Senior Analyst/Broker
DeCarley Trading
1-866-790-TRADE
Local : 702-947-0701
http://www.decarleytrading.com/
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
