Conflicting Signals

• November 29, 2001
• Dave Floyd

The sellers
were back again yesterday, although the intensity of the selling was
a bit more contained, or better put, more orderly. There were only a handful of
sharp moves to the downside which paid off well. Nonetheless, the patient and
selective trader was rewarded. Another note, most of the big moves were
initiated off of KTNs. If you look back at
a 5-minute chart of the S&P futures, you will notice a nice reversal off of
1138 at 10 am EST. Those of you who are regular readers will know that I have
been pointing out this level for several days. Good trades were had from that
level.

In terms of this morning’s session,
there were two reports out at 8:30 am EST which offered very conflicting
signals. Jobless claims soared while GDP rose. There are more reports due at 9
am EST which may clarify things a bit. If New Home
Sales and The Help Wanted Index come
in above or below expectations, the market will probably offer some excellent
volatility setups.

Key
Technical Numbers

As always, feel free to send me your
comments and questions.  See you in TradersWire.

Dave