What’s Up, What’s Down: Spotlight on Indices, Financials

Looking ahead to Friday by reflecting on Thursday’s trading 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

Have the Indices broken out of their consolidation patterns? And a higher close for Eurodollar futures

INDICES: 12/03/10 Higher closes yesterday for the Dow and cash futures along with the S&P’s and nasdaq again. All of the indices are still in uptrends overall in my opinion making their best highs and closes in over two weeks after breaking out of their respective consolidation patterns. They now should test their highs made back in November.

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FINANCIALS: 12/03/10 Higher eurodollars close Thursday while lower for notes and bonds for the second trading session in a row.The eurodollar followed through higher again after Wednesday’s reversal type action. However,the eurodollar is now in a strong resistance area as shown below. The notes and bonds settled lower again with the former making its worst low and close since early August and the latter its worst close since July 29th.

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Special Note for Cotton Traders: The daily price limit for Friday, December 3 will expand to 6 cents.

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 or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.