June Volatility

In terms of economic news Friday's unemployment figures probably did more to shatter the illusion of economic growth than any others. Coupled with the dire European situation, we feel this will be the catalyst for the next round of Quantative Easing, possibly as early as this week from the Bank of England. The US will very probably follow, citing their dual mandate responsibilities, but in reality due to political pressure before this years presidential election. The severity of Friday's drop, pushed the market once again into oversold territory to create a buying opportunity. Any price below 1287 is acceptable with a small position, adding more at or below 1275, with a last entry point at 1257. A maximum position of 6 contracts is recommended, running a stop-loss in the 1240 area. For actual trades view the portfolio blog.