What’s Up, What’s Down: Looking at Stock Index Futures

Comments for Tuesday, October 19, 2010

Looking Ahead to Today by Reflecting Back at Monday’s Price Action

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors.

INDICES:

[Reports today: HOUSING STARTS & PERMITS] Higher closes yesterday for the cash and Dow futures along with the S&P’s while slightly lower for the Nasdaq. All of the indices continue to look higher with the Dow settling slightly higher, the S&P’s making a new recent high and close while the Nasdaq made a new Contract HIGH BEFORE closing slightly lower in reversal type action. Watch the financials closely because if they turn lower, that could indicate that the public is feeling better about the economy and then the Dollar might start turning higher. This could then signal a near term top on the stock market. Of course, this is my interpretation of what might happen! BUY SIGNALS FOR THE DOW, S&P’S AND THE NASDAQ. CALL FOR DETAILS!

Dow Chart

Emini Chart

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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