Air Pocket

Last week the market hit a significant air pocket. Our analysis has a year maximum of between 1670 and 1700 ( with a 'shadow' of 1730 ). The recent top could well signal a reversal in the coming months. We would like to see a re-test of the 1680 level without a significant break above 1690, to confirm such a scenario. We will go short above 1680 with 3 contracts, setting a stop-loss at 1693.

Blow Off

Friday's unemployment report was the excuse for a gap up and strong rally to make further all time records. We were stopped out to limit some of the damage, but overall the first third of the year is one we would rather forget ! We are concerned that the market may now begin a hyper-inflation run, but are prepared to risk one more short, until further confirmation has been shown. We will short 5 contracts at the open of 1613, with a stop of 1623 and a target of 1575 where we will take profits.