Futures Market Blog

February 10th, 2009

See DeCarley Trading’s “Trade Like a Girl” article in the March issue of Stocks Futures and Options Magazine!

Stocks turn over on a lack of TARP detail

Equity traders weren’t happy with Treasury Secretary Timothy Geithner’s revision of the TARP plan and they expressed their opinions by selling shares.  The plunge was focused on bank stocks due to fears that the government’s plans wouldn’t be enough to revive the industry but spread throughout all sectors.  This was evidenced by shares of Wal-Mart, one of the darlings of the Dow, plummeting over 2% on the session.

Treasury Secretary Timothy Geithner claimed that the Obama administration will be aggressive in their handlings of what they are calling the “worst financial crisis since the Great Depression”.  However, the market saw it as a lot of promises with no detailed plans of action.

Wal-Mart plans to build fewer stores in 2009 as well as cut at least 700 jobs from its headquarters in Arkansas.  However, they also announced that they will be adding jobs in its New York office and throughout other areas of the nation.  The news wasn’t taken lightly by a market that has held Wal-Mart out to be nearly “recession-proof”.

Now that the major indices have rolled over, the stop running and speculative selling may continue in the near term.  It appears as though selling rallies in tomorrow’s session will be the correct speculation.  However, the daily trading range has become increasingly narrow and major support isn’t too far away so caution is warranted.

Major support in the S&P should be found near 800, as has been the case in recent months.  However, our earlier projection of 790 could be in the cards.  We see significant support in the Dow near 7800 but a close below may suggest a slide under 7500.  Support in the NASDAQ should be found near 1200, with 1133 as our S2.

* 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 -

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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 -

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Please note: A mini-NASDAQ 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 -

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Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701

www.CarleyGarnerTrading.com
www.DeCarleyTrading.com

*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.

Past performance is not indicative of future results.  The information and data in this report were obtained from sources considered reliable.  Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.  Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.