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The long and the short of it:

Last week the market was range bound between 1185-1195, late in the week the market surged above the 1195 upside and tested the 1213.00 level in the past 5 days 4 times. This week the market is range bound once again, between 1202-1213. Arguably the market has more defining fundamental news this week, with Greenspan talking today, supoosedly to address inflationary concerns, posed by last weeks PPI numbers, and Firday we have the Feb unemployment numbers. At 9:30 this morning the weekly energy inventory numbers will be released, analysts predictions on these numbers are mixed from +500K to -1 mil in supply. I would guess that the market will not break out of the 1202-1213 range today, but I feel by the end of the week we will not be in this range. I can honestly say, at this point, i don't have a clear idea which way I think the market will trend. Today I will look to trade both sides of the range, I will look to sell between the PP and R1 levels at 1212.00 and I will look to be a buyer at the S2 1198.50 level.

Daily Trade Set-ups:

SHORT SIDE ENTRY:

S 1 ESH5 1212.00

B 1 ESH5 1216.00 PROTECTIVE STOP)

B 1 ESH5 1204.00 PROFIT OBJECTIVE)

LONG SIDE ENTRY:

B 1 ESH5 1198.50

S 1 ESH5 1194.50 (PROTETIVE STOP)

S 1 ESH5 1206.50 (PROFIT OBJECTIVE)

Your future in Futures!

Michael A. Cavanaugh

My Futures Online

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mike@fcillc.com

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