Trading levels and reports for May 22nd
The market is opening lower on the back of overseas weakness. International/emerging markets
continue to liquidate. Asset allocation to theses markets has been extremely strong this year. It is
difficult to game when the liquidation or unwind will end. Indian shares came sharply off their low
(down 10% at one point and finished off about 3.5%) hinting that the sell off may be near an end, but the
Nike Nikkei finished on its low. At the corporate level, the market will have to chew through the Master
Card and Vonage IPOs. Supply will be difficult to absorb in the current environment. Overnight news
is not inspiring, although there are a host of friendly analyst comments. Watch the following: 1)
Internet: Both YHOO and GOOG get favorable comments in one form or another. 2) Retail – LOW
posted strong results, but analyst comments on housing are cool and a niche firm is cool toward BBY.
3) Financials – BKX is in support about 108, but brokers are vulnerable to more selling on weak
overseas markets. These names need to stabilize or rally to confirm the selling is exhausted. 4)
Transport names get friendly analyst comments, but lower commodities are no help to the bull case.
Looking to bottom fish here, but do so carefully. SPM6 has decent support 1255 to 1260. Risk a 30
minute close under 1250 and target a robust retracement rally. Best guess for today’s range: 1255 to
1278.
services and other sources which we believe are reliable. Man Financial Inc does not guarantee that such information is accurate or complete and it should
not be relied upon as such. Any opinions expressed reflect judgments at this date and are subject to change without notice. The principals of Man Financial
Inc and others associated or affiliated with it may recommend or have positions which may not be consistent with the recommendations made. Each of these
persons exercises independent judgment in trading, and readers are urged to exercise their own judgment in trading.
LEVELS:| Contract (June 2006) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1295.03 | 1646.50 | 11330.00 | 747.17 |
| Resistance 2 | 1285.27 | 1628.75 | 11268.00 | 737.43 |
| Resistance 1 | 1278.03 | 1617.00 | 11224.00 | 731.47 |
| Pivot | 1268.27 | 1599.25 | 11162.00 | 721.73 |
| Support 1 | 1261.03 | 1587.50 | 11118.00 | 715.77 |
| Support 2 | 1251.27 | 1569.75 | 11056.00 | 706.03 |
| Support 3 | 1244.03 | 1558.00 | 11012.00 | 700.07 |
| Contract (June 2006) | British Pound | Euro | Ten Years | US Bonds |
| Resistance 3 | 1.9200 | 1.3062 | 106 6/32 | 108 9/32 |
| Resistance 2 | 1.9082 | 1.2976 | 106 | 107 28/32 |
| Resistance 1 | 1.8945 | 1.2890 | 105 25/32 | 107 17/32 |
| Pivot | 1.8827 | 1.2804 | 105 19/32 | 107 4/32 |
| Support 1 | 1.8690 | 1.2718 | 105 12/32 | 106 25/32 |
| Support 2 | 1.8572 | 1.2632 | 105 6/32 | 106 12/32 |
| Support 3 | 1.8435 | 1.2546 | 104 31/32 | 106 1/32 |
Monday, May 22nd, 2006
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
Sincerely,
Ilan Levy-Mayer, M.B.A
Vice President
Cannon Trading Co Inc.
http://www.cannontrading.com
http://www.E-Futures.com
ilan@cannoncapital.com
Yahoo IM ilanlevy1970
310-859-9572
800-454-9572
Fax 310-859-0547
9301 Wilshire Blvd. Suite #614
Beverly Hills, Ca 90210
posted by Cannon Trading at 6:29 AM
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