Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday April 21, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
Big turn around on equities between Friday and today thanks to China news….will be interesting to see what tomorrow will bring…..
From our friends at TradeTheNews.com weekly summary below, followed by mid session update from today, to provide you with a bit more of the fundamentals moving the markets:
” The Shanghai Composite rose higher for the sixth straight week, tacking on another 6%, making for impressive rally of over 30% for the year. Investors have been undeterred by the apparent slowdown in the economy, as showcased by Q1 GDP and the bulk of data-points for the month of March. First quarter GDP growth of 7% was right in line with consensus and matched the overall 2015 target but still marked a 6-year low. Retail sales grew just 10.2% y/y, the slowest since February 2006 and missing forecasts. Industrial output grew 5.6%, the slowest since November 2008 and well below estimates at 7%e. Fixed-asset investment grew at a 14-year low of 13.5%.
Developments on Friday may put a big dent in the Chinese rally and by extension global equities. To help cut leverage and cool equity markets the China Securities Regulatory Commission banned the margin trading arms of brokerages from taking part in so-called “umbrella trusts”, raising fears of a big China equity selloff. The regulator also placed limits on margin trading for highly risky small stocks that trade OTC, and warned the small investors driving the mainland equity rally not borrow money or sell property to buy stocks. ”
“European and US stocks are seeing a strong snapback from Friday’s declines. The PBoC’s RRR cut helped neutralize fears of a Chinese selloff after Friday’s regulatory crackdown and some good US earnings helping US markets go higher. As of writing, the DJIA is up 1.34%, the S&P500 is up 1.02% and the Nasdaq is up 1.14%.
During the European session, there were news reports that EU Commissioner Juncker was looking at a new plan to prevent a Greek default, as negotiations were going nowhere. Later the Greek government issued a decree forcing local governments to transfer all their cash balances to the central bank ahead of another IMF payment as the nation’s cash crunch worsens. With the situation looking dire, ECB member Constancio said that if a default happens, EU treaties do not allow a country to be expelled from the euro zone. ECB’s Nowotny commented that there would be limited contagion from a Greek exit. EUR/USD remains right in the middle of its 6-week trading range between 1.05-1.10.
In a sign of things to come, major property firm Kaisa Group Holdings Ltd. Became the first Chinese developer to default on debts denominated in USD after 30 days elapsed from two missed bond payments. Kaisa had until Monday to make the payments after a 30-day grace period expired at the weekend. Kaisa’s business imploded in February after the company’s management quit over ties to China’s disgraced internal security chief Zhou Yongkang, and analysts suggest the authorities will continue to let firms like Kaisa go in their efforts to clean up financial markets.
Morgan Stanley had a very good first quarter, with net income up sharply y/y and revenue up more than 10% y/y. Both EPS and revenue topped expectations. The CEO said the firm’s investment banking pipeline remains healthy and bond trading revenue hit its highest level in three years. MS was up more than 2% in the premarket but has given up gains in cash trading. In other movers, Halliburton is up 4% on a good earnings report. In the US, the firm said drilling activity has dropped approximately 50% from the peak in November and pricing pressure would continue. Royal Caribbean cut its FY guidance, citing FX impact, and somewhat puzzlingly cited rising fuel costs. RCL is down nearly 8%. ”
The equivalent of a financial police radio, TradeTheNews.com covers economic numbers, interest rate decisions, stock up/down grades, rumors, central banker speak, energy news, terrorism, geopolitical developments and natural disasters in real-time.
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|Contract June 2015||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||June Gold||May Silver||June Crude Oil||June Bonds||June Euro|
|Resistance 3||1224.2||16.77||61.01||166 26/32||1.0914|
|Resistance 2||1216.6||16.56||59.82||166 3/32||1.0871|
|Resistance 1||1206.0||16.25||58.78||165 3/32||1.0807|
|Support 1||1187.8||15.73||56.55||163 12/32||1.0700|
|Support 2||1180.2||15.52||55.36||162 21/32||1.0657|
|Support 3||1169.6||15.21||54.32||161 21/32||1.0593|
|Contract||May Corn||May Wheat||May Beans||May SoyMeal||May Nat Gas|
|TueApr 21||5:00am||EUR||German ZEW Economic Sentiment||55.6||54.8|
|EUR||ZEW Economic Sentiment||63.7||62.4|
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