April 3rd, 2009

Catch me on Facebook!

Non-farm = Non-event

All of the hype and anticipation that led up to this morning's employment report quickly dissipated as traders discovered that the numbers were in line with expectations.  Although whisper numbers were calling for job losses in excess of 800,000 the actual number was reported at 663,000.  I don't think that anyone could spin this into a positive indication for the economy, but it is fair to say that it could have been worse. 

Accordingly, the market's reaction was overall bearish but with very little conviction.  In my view, given the weak numbers and what many consider to be overbought technical conditions Friday was a victory for the bulls.  If my instincts serve me well, we could see a continuation of the rally early into next week. 

We were expecting to see some more buying in today's session and are a little suspicious of the markets given Friday's intraday high in the S&P was at or near trend line resistance.  Even so, we stand by our assumption that we will see higher prices in the near term.  Our resistance in the S&P stands at 885, 864 and again at 872 (which we don't necessarily expect). 

If you are trading the Dow, we see resistance at 8,160 and again at 8,230.  NASDAQ resistance can be found near 1336 and distantly at 1363. New resistance in the Russell 2000 should be found at 467 and again at 473.

Sorry so short, have a nice weekend!

* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data.  However, market analysis and commentary does.

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 500 Futures and Options Trading 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 Jones Futures and Options Trading Recommendations

**There is unlimited risk in naked option selling and futures trading

Position Trade –

Flat

Please note: A mini-Russell 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 Trading Recommendations

**There is unlimited risk in naked option selling and futures trading

Position Trade –

April 3 - Sell the mini-NASDAQ at 1337 or better.

*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.

There is substantial risk of loss in trading futures and options.