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Trading Levels & Reports for Quadruple Witching Friday June 15th 2012

Posted on by Ilan

Jump to a section in this post:

1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Friday June 15, 2012

Hello Traders,

Hello Traders,

Tomorrow ( Friday June 15th) is quadrupole witching day. Stock options, futures, futures options and single stock futures ALL expire.

Below is from a colleague of a colleague….

Expiration – comments ahead of this Fri from JPMorgan’s Marko Kolanovic – with key Greek elections coming this weekend, investors are closely looking for signs of stress in Europe and reviewing their tail hedging strategies.  $610bn of S&P 500 monthly options are expiring this Friday, making it the biggest S&P 500 options expiration year to date.  As these options don’t cover the election date, investors are rolling hedges into quarter-end, July and September expiry S&P 500 options. In addition, the open interest in VIX call options reached all time highs today (notional exposure of $430m per 1 VIX point).  Put-call gamma imbalance is still very high (~$12bn per 1%).  High level of put-call gamma imbalance means that investors hold option hedges and dealers are likely short these options and hence short S&P 500 gamma.  Short gamma exposure of dealers could fuel market volatility and increase the risk of a sharp selloff, should the macro fundamentals significantly worsen.

ALSO June currencies are about to enter delivery stage, which can be costly. I highly recommend starting to trade September currencies as of Friday morning .

Be disciplined, be patient and trade well!

GOOD TRADING!

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index

Contract Sept. 2012 SP500 (big & Mini) Nasdaq100 (big & Mini) Dow Jones (big & Mini) Mini Russell Dollar Index
Resistance 3 1349.83 2586.67 12873 778.67 82.67
Resistance 2 1338.52 2565.83 12754 769.43 82.48
Resistance 1 1330.13 2551.67 12672 763.57 82.19
Pivot 1318.82 2530.83 12553 754.33 82.00
Support 1 1310.43 2516.67 12471 748.47 81.71
Support 2 1299.12 2495.83 12352 739.23 81.52
Support 3 1290.73 2481.67 12270 733.37 81.23

3. Support & Resistance Levels for Gold, Euro, Crude Oil, and U.S. T-Bonds

Contract Aug Gold June Euro July Crude Oil Sept. Bonds
Resistance 3 1651.9 1.2748 87.14 150 7/32
Resistance 2 1640.5 1.2692 85.76 149 26/32
Resistance 1 1633.3 1.2655 85.02 149 9/32
Pivot 1621.9 1.2599 83.64 148 28/32
Support 1 1614.7 1.2562 82.90 148 11/32
Support 2 1603.3 1.2506 81.52 147 30/32
Support 3 1596.1 1.2469 80.78 147 13/32

4. Support & Resistance Levels for Corn, Wheat, Beans and Silver

Contract July Corn July Wheat July Beans July Silver
Resistance 3 617.2 628.3 1432.83 3002.2
Resistance 2 612.8 627.2 1422.67 2954.8
Resistance 1 607.2 625.3 1404.33 2909.7
Pivot 602.8 624.2 1394.17 2862.3
Support 1 597.2 622.3 1375.8 2817.2
Support 2 592.8 621.2 1365.67 2769.8
Support 3 587.2 619.3 1347.33 2724.7

 

5. Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Fri

Jun 15

  Up Next 2:50am EUR
ECB President Draghi Speaks
 calendar detail
4:00am EUR
Italian Trade Balance
 calendar detail 1.34B
2.06B
 ic chart
5:00am EUR
Employment Change q/q
 calendar detail star -0.2%
-0.2%
 ic chart
5:00am EUR
Trade Balance
 calendar detail star 4.2B
4.3B
 ic chart
8:30am USD
Empire State Manufacturing Index
 calendar detail 13.6
17.1
 ic chart
9:00am USD
TIC Long-Term Purchases
 calendar detail 45.3B
36.2B
 ic chart
9:15am USD
Capacity Utilization Rate
 calendar detail 79.2%
79.2%
 ic chart
9:15am USD
Industrial Production m/m
 calendar detail 0.1%
1.1%
 ic chart
9:55am USD
Prelim UoM Consumer Sentiment
 calendar detail star 77.5
79.3calendar previous revised
 ic chart
9:55am USD
Prelim UoM Inflation Expectations
 calendar detail star
3.0%calendar previous revised
 ic chart

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

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.