PPI report to set today’s tone

Monday kicked off the week to put the Nas 100 and Nas Composite into new highs for 2006.
The S&P 500 and the Dow just under the highs from last week which is the 2006 and multi year/all time highs. Friday’s volume was outpaced today, so that leaves an accumulation day, but we are still on lighter volume than we saw last week and under key moving averages.

Crude gave up more ground today to close lower by $1.01 and close at $58.58. Lower global demand is still being
cited as the reason for the price falling. Which leaves us to watch for inventories Wednesday to insure supply is not falling off. Gold also took it on the chin today as it fell $4.30 closing at $625.80.

Tuesday has plenty of economic data and earnings to get things moving along all in the pre market. If we did not have such big data due at 8:30 I would say look for an early pullback. But the PPI data is inflationary and will be watched carefully to set the days tone. That data along with the Dow components all in the pre market will give us a volatile opening. So I really have no bias given the data release, but I will be watchful of a pullback.

Monday was day one of options expiration week gave us nice range and volume up from the end of last week, but still a little light. But it was a good start to what is usually a week full of ups and downs. Tuesday, Wednesday and Thursday generally bring the larger ranges and bigger volume of expiration week. Usually the week is made up of several days of reversals, a trend day and a narrow range day. So we have plenty to look forward to this week.

Some earnings for the Week of November 13 — 17: Tuesday pre market — A, AEOS, BJ, HD, ROST, SKS, SCHS, SPLS, TGT, TJX, WMT and after the close — ANF, ADI, GG, JBL, LZB. Wednesday pre market — COCO, MESA, TLB, TYC, and after the bell — AMAT, BEAS, HOTT, LTD, NTAP, PETM. Thursday pre market — BKS, PLCE, HP, MDTH, SHLD, TOPT, WSM, ZLC, ZOLL and after the bell — CPWM, DELL, DITC, FL, GPS, HPQ, INTU, ISLE, MRVL, MSCC, SBUX. Friday pre market — ANN, KIRK,

Economic due for the Week of November 13 — 17: Tuesday 08:30 Retail Sales, 08:30 Retail Sales ex-auto, 08:30 PPI, 08:30 Core PPI, 10:00 Business Inventories, Wednesday 08:30 NY Empire State Index, 10:30 Crude Inventories, 14:00 FOMC Minutes, Thursday 08:30 CPI, 08:30 Core CPI, 08:30 Initial Claims, 09:00 Net Foreign Purchases, 09:15 Industrial Production, 09:15 Capacity Utilization, 12:00 Philadelphia Fed, Friday 08:30 Housing Starts, 08:30 Building Permits.

ES (S&P 500 e-mini) Tuesday’s pivot is 1387.50, weekly pivot is 1382. Monday’s strength put in a nice first hour, but the range stayed contained and in the channel for the rest of the day. The pre market data will likely give us an early trading opportunity so we can watch 1390.75 as resistance, above that we can look for 1393 and 1395.25 and if the data doesn’t pull the rug out, even higher. A break of 1382, would take us into 1379.25 and then likely on to 1376 area. Intra day Support: 1383.25, 1380.50, 1379.25, 1376 and 1371.50. Resistance: 1386.50, 1390.50, 1393 and 1395.25.

NDX (Nasdaq 100) closed +16.89 at 1768.00. Support: 1740.99, 1731.87, 1722.74, 1715.85,1709.74, and 1693.19. Resistance: 1780.17, 1803.85, 1830.90, 1847.06.

Good trading to everyone.

Teresa Appleton has traded equities and options for
nine years and futures for seven. She is founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and
futures traders,

click here.