Sunday, April 6, 2008

Time to be bearish?

A nice buy-the-dip/support level trade here. SH = Inverse S&P 500 return x 2.


@1360-70, the risk/ reward of shorting the S&P become favorable. I'll start to look for levels to short into the ES.


The employment news was just bad. The market doesn't seem to be reacting too much to it. All we need is some bad news to send this market down the spiral.

Apr 07 15:00 Consumer Credit Feb
$5.0B $6.0B $6.9B
Apr 08 10:00 Pending Home Sales Feb

-0.5% 0.0%
Apr 08 14:00 FOMC Minutes Mar 18




Apr 09 10:00 Wholesale Inventories Feb
0.7% 0.5% 1.0%
Apr 09 10:30 Crude Inventories 04/05
NA NA 7317K
Apr 10 08:30 Initial Claims 04/05
380K NA 407K
Apr 10 08:30 Trade Balance Feb
-$57.6B -$57.4B -$58.2B
Apr 10 14:00 Treasury Budget Mar
-$70.0B -$80.0B -$96.3B
Apr 11 08:30 Export Prices ex-ag. Mar
NA NA 0.5%
Apr 11 08:30 Import Prices ex-oil Mar
NA NA 0.6%
Apr 11 10:00 Mich Sentiment-Prel. Apr
68.0 69.4 69.5


Pending home sales and FOMC will be the market mover of the week. Monday would likely be a slow day. I'm looking for the market to get volatile after Tuesday. Volatility = Opportunity.

What's the rate cut expectation by the way?

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