Intestinal Fortitude

If you do not have the stomach for volatility our suggestion would be to take the week off. Crude oil is showing signs of life posting a higher high and higher low in today’s session. Use a trade below $76 in June or above $79 as a sign of where from here. On further signs of an interim bottom we will be suggesting clients to gain long exposure. We’ve advised any traders who hold bullish positions in the distillates to use a 20 cent appreciation to exit remaining longs. June natural gas has managed a close back above the 9 and 20 day MA’s jumping virtually 4% today. We remain convinced that a 10-15% appreciation is just around the corner. Look for ways to get long via future and options as we see a trade over $5 in the coming weeks. The rally back in equities is spectacular but in our opinion short lived. There was too much damage done to the daily and weekly charts and as soon as the false hope of a resolution wears of from the actions over the weekend in Europe we expect another leg down. We feel all of these bailouts as nothing more than kicking the can down the road. We view upside resistance in the equities at the 50 day MA; in the S&P at 1170, 10800 in the Dow and 1960 in the NASDAQ. Sugar prices traded up to the 9 day MA

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Intestinal Fortitude

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