Charlies Comments 04-20-2018

Trade Date: 4/20/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 119-28-119-295, 120-00-120-015, 120-035-120-05, 120-08-120-12

ZN S1-S4: 119-23-119-25, 119-16-119-20, 119-08-119-12, 119-00-119-04

ZN/ZB Comments: No news to drive the mkts today. Little news OVN either. This usually yields a trading range day. Equities are mixed OVN. Asia is down, EU/UK is up and the ES is unchanged. This also suggests a trading range mkt today. Fed Governor Williams speaks at 1115 and may be the source of news driven volatility. Today’s news: Baker Hughes Rig Count is expected at ??? (previously 1110/1008). No news focus. Maybe the ES will influence today’s direction. Hasn’t so far this week. Resistance begins at 119-28/120-00 and support is at 119-20/24 as the mkt opens. Will play for a lower mkts this AM and want to sell into early strength. If 119-20 then holds, I can trade from the long side of the mkt. First sell is 119-27/31 followed by 120-03/07. Cover at 119-21 OB. First buy is 119-20/24 followed by 119-13/17. Exit at 119-31 OB.

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ZB R1-R4: 143-30-144-01, 144-03-144-05, 144-08-144-12, 114-17-144-22

ZB S1-S4: 143-19-143-20, 143-11-143-16, 143-04-143-08, 142-28-143-00



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ES R1-R4: 2698-2700, 2703-2708, 2710-2715, -

ES S1-S4: 2690-2692, 2685-2688, 2675-2680, -

ES Comments: Asia sold in response to yesterday’s selling in the US mkts. The EU/UK mkts recovered and did rally a bit. The ES is close to unchanged as the mkt rolls into the day session’s opening. No news OVN. None scheduled for this AM. The Fed’s Williams speaks at 1115 and may spark the mkts, if his comments are off script. . Today’s news: Baker Hughes Rig Count is expected at ??? (previously 1110/1008). No news focus. Resistance begins at 2700/05 and support is at 2680/85 as the mkt opens. Can trade from either side this morning. The Globex structure supports at retest of 2700 and or higher prices. Will try the long side first. IF 2700/05 then holds, can get short. First buy is 2686/91 followed by 2676/81. Exit at 2700 OB. First sell is 2699/2704 followed by 2709/14. Cover at 2686 OB.

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Charlies Comments 04-19-2018

Trade Date: 4/19/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-015-120-04, 120-065-120-085, 120-10-120-13, 120-16-120-20

ZN S1-S4: 119-28-119-30, 119-235-119-24, 119-16-119-20, 119-08-119-12

ZN/ZB Comments: TSY’s broke support last night when the London session opened. The ES sold too. The inverse relationship can’t be counted on this week. Both mkts can move in the same direction these days. Makes it a bit more difficult to trade. TSY’s are headed lower given the Fed’s guidance on interest rate increases. The next one is scheduled for June. Little news OVN. Not much scheduled for this morning. Fed Governor Quarles speaks this AM and may be the news source that stimulates the mkts. Today’s news: Jobless Claims is expected at 230 K, Philly Fed at 20.1, LEI at +.3% and N Gas at ??? (previously -19 BCF). The news focus should be Philly Fed. Resistance begins at 120-015/065. Support is at 119-26/30. I want to sell into early strength and see if 119-24/28 can be taken out. IF not, I can trade from the long side. First sell 120-01/05 followed by 120-07/11. Cover at 119-25 OB. First buy is 119-25/29 followed by 11917/21. Exit at 120-03 OB.

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ZB R1-R4: 144-09-144-12, 144-16-144-17, 144-20-144-23, 144-28-145-00

ZB S1-S4: 144-03-144-04, 143-28-144-00, 143-20-143-24, 143-11-143-16



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ES R1-R4: 27-08-2711, 2713-27-15, 2719-2725, -

ES S1-S4: 2700-2704, 2695-2697, 2685-2690, -

ES Comments: The equity mkts are higher OVN minus the US mkts. I believe that the OVN buying was again catch up buying after yesterday’s higher closes in the US mkts. Little news OVN. Today’s news rarely moves the mkts. Quarles speaks this AM and may be the source of mkt volatility. Today’s news: Jobless Claims is expected at 230 K, Philly Fed at 20.1, LEI at +.3% and N Gas at ??? (previously -19 BCF). The news focus should be Philly Fed. Resistance begins at 2708/13 and support is at 2700/04 as the mkt opens. I can trade form either side this AM and offer no strong opinion. Will have to see what develops. AS long as the mkt stays above 2700 it can trade higher. First buy is 2696/2701 followed by 2686/91. Exit at 2709 OB. First sell is 2709/14 followed by 2719/24. Cover at 2701 OB.

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Charlies Comments 04-18-2018

Trade Date: 4/18/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-16-120-165, 120-185-120-20, 120-225-120-24, 120-28-121-00

ZN S1-S4: 120-07-120-10, 120-03-120-055, 119-28-120-00, 119-20-119-24

ZN/ZB Comments: Little news OVN. None scheduled for today. Equities round the globe are higher following yesterday’s US lead. Our equity mkts have taken out yesterday’s highs. TSY’s are stuck in a range. The inverse relationship between equities and TSY’s appears to be on hold. The yield curve is headed for 0 and this is some of the support for TSY’s. IS a recession on the way. Yesterday’s beat by Goldman was sold. Rarely perfectly clear. Based on Retail Sales the consumer is spending the tax savings. It historically is the American way. Today’s news: EIA Crude Inventories is expected at +.5 MB’s. Resistance begins at 10-16/20 and support is at 120-04/08 as the mkt opens. Given the strength in equities I like the short side first. IF 120-00/04 holds, I can trade from the long side of the mkt. First sell is 120-15/19 followed by 120-23/27. Cover at 120-05 OB. First buy is 120-05/09 followed by 119-29/120-01. Exit at 120-19 OB.

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ZB R1-R4: 145-16-145-19, 145-22-145-24, 145-27-145-28, 146-00-146-04

ZB S1-S4: 145-11-145-12, 145-07-145-09, 145-02-145-04, 144-28-145-00



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ES R1-R4: 2720-2725, 2730-2735, 2740-2745, -

ES S1-S4: 2710-2712, 2704-2707, 2695-2700, -

ES Comments: The ES has taken out yesterday’s highs in Globex and will open on a new high from the start of the rally on 4/04. Equities round the globe followed yesterday’s lead and rallied OVN. This week’s buying is attributed to stronger than forecast earnings at the start of earning’s season. The tax cuts for corporations guarantees this. Analysts will be looking for increased revenues too in addition to tax savings in the earnings reports. Ultimately revenues determine the EPS numbers. I believe the mkt is in a trading range and coming off its lows and headed higher to retest recent resistance at 2775/2800. Will see if that happens. No news OVN nor today to drive the trading. . Today’s news: EIA Crude Inventories is expected at +.5 MB’s. Resistance begins at 2720/25 and support is at 2705/10 as the mkt opens this AM. I like the long side of the mkt first this AM. IF the mkt can’t take out and hold 2725, I can trade from the sht side of the mkt. First sell is 2719/24 followed by 2729/34. Cover at 2706 OB. First buy is 2706/11 followed by 2696/2701. Exit at 2724 OB.

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Charlies Comments 04-17-2018

Trade Date: 4/17/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-155-120-17, 120-19-120-20, 120-225-120-24, 120-28-121-00

ZN S1-S4: 120-07-120-10, 120-03-120-055, 119-28-120-00, 199-20-199-24

ZN/ZB Comments: The ES is higher OVN and TSY’s are in a trading range. The inverse relationship is usually in effect OVN and for the 1st 2 hours of the day session. Will higher equities take TSY’s lower this AM or not? The questions facing traders this AM. Stks are moving into earnings season and earnings should be strong, stronger than normal. This should boost equity prices over time. Higher interest rates are taking TSY’s lower. Higher equities can accelerate the selling in TSY’s. Little news OVN. China lowered its reserve requirements for banks, which will support their economy. Today’s news can move the mkts. Today’s news: Housing Starts is expected at 1.264 M, Permits at 1.315 M, Industrial Production at +.4%, Manufacturing IP at +.2%, Capacity Utilization at 78.0. The news focus should be Industrial Production and the direction of the ES. Resistance begins at 120-14/18 and support is at 120-06/10. I like the sht side of the mkt first this AM. If the mkt can’t take out 120-04/06, I can get long. First sell is 120-14/18 followed by 120-23/27. Cover at 120-05 OB. First buy is 120-01/05 followed by 119-25/29. Exit at 120-19 OB.

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ZB R1-R4: 145-17-145-18, 145-20-145-25, 145-28-146-02, 146-06-146-14

ZB S1-S4: 145-09-145-13, 145-06-145-08, 145-02-145-04, 144-28-145-00



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ES R1-R4: 2696-2702, 2707-2712, 2716-2723, -

ES S1-S4: 2686-2690, 2679-2682, 2670-2675, -

ES Comments: It is earnings season and the lower corporate tax rates will strengthen those reports. Equity prices are driven by earnings. Earnings are forecast to be higher. Equity prices should move higher over time, if the economic news stays as it has been to date. China lowered its banking reserve requirements, which should support their economy and stk prices too. The OVN selling stopped in Asia and the mkts reversed in the EU/UK. The US mkts are pointed higher this AM. Stops above 2700 are w/in reach. We have news this AM that could influence today’s mkts. The news, if as forecast, is supportive. Today’s news: Housing Starts is expected at 1.264 M, Permits at 1.315 M, Industrial Production at +.4%, Manufacturing IP at +.2%, Capacity Utilization at 78.0. The news focus should be Industrial Production. Resistance begins at 2700/05 and support is at 2680/85 as the mkt opens. I like the long side first and want to buy into early weakness. If 2700 holds as resistance, I can trade from the short side. First buy is 2686/91 followed by 2676/81. Exit at 2700 OB. OK to sell failure to take out and hold 2700. First sell is 2699/2704 followed by 2709/14. Cover at 2691 OB.

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Charlies Comments 04-16-2018

Trade Date: 4/16/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-11-120-13, 120-16-120-18, 120-19-120-20, 120-24-120-28

ZN S1-S4: 120-03-120-055, 119-28-120-00, 119-235-119-24, 119-16-119-22

ZN/ZB Comments: Equities are mixed OVN w/the US equity mkts higher into their openings this AM. IF the US equity mkts continue to rally this AM, TSY’s should sell. The inverse relationship has been reliable of late. TSY’s are headed lower because the Fed is raising interest rates w/the next increase forecast for June. The weekend news centered on the attacks on Syria and the fallout from such. The message from these attacks has to affect the actions of N Korea, Iran and others spreading trouble across the globe. WE do have news this AM that can impact the trading. Today’s news: Retail Sales is expected at +.4%, Ex-Autos at +.2%, Empire State Manufacturing Survey at 18.2, Business Inventories at +.6%, Housing Mkt Index at 70.0. The focus should be Retail Sales ex- Autos and the direction of the ES, IMO. Resistance begins at 120-12/16 and support is at 120-03/07 as the mkt opens. I like the sht side of the mkt and want to sell into early strength. If 120-00/04 then holds, can trade form the long side. First sell is 120-07/11 followed by 120-15/19. Cover at 120-01 OB. First buy is 120-00/04 followed by 119-25/29. Exit at 120-11 OB.

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ZB R1-R4: 144-27-144-30, 145-00-145-03, 145-08-145-13, 145-16-145-22

ZB S1-S4: 144-20-144-22, 144-14-144-18, 144-06-144-11, 144-00-144-04



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ES R1-R4: 2677-2680, 2685-2691, 2698-2703, -

ES S1-S4: 2661-2666, 2650-2655, 2640-2645, -

ES Comments: Will the ES rally this AM and try OVH resistance at 2700? The question of the day for traders. The equity mkts were mixed OVN w/the US mkts the strongest of the world’s mkts. The attacks on Syria were contained. Russia ran for the weeds in anticipation of the attack. Russia’s vaunted missile defense weapons were missing in action. The message for those that take on the Trump administration is that if Trump says don’t do this and you do, there will be consequences. Countries that have purchased Russian weaponry have to have doubts about the capabilities of such. Russian equipment, especially missile defense systems, has always been in question, since Viet Nam. Today’s news can impact the trading. Today’s news: Retail Sales is expected at +.4%, Ex-Autos at +.2%, Empire State Manufacturing Survey at 18.2, Business Inventories at +.6%, Housing Mkt Index at 70.0. The focus should be Retail Sales ex- Autos, IMO. Resistance begins at 2675/80 and support is at 2660/65 as the mkt opens. I like the mkt this AM. IF 2680 is rejected I can trade from the sht side of the mkt. First buy is 2661/66 followed by 2651/56. Exit at 2680 OB. First sell is 2684/89 followed by 2694/99. Cover at 2656 OB.

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Charlies Comments 04-13-2018

Trade Date: 4/13/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-185-120-20, 120-225-120-24, 120-26-120-28, 121-00-121-04

ZN S1-S4: 120-11-120-14, 120-055-120-08, 120-00-120-03, 119-24-119-28

ZN/ZB Comments: Little news OVN. The drum beats of war appears to have lessened OVN. The talk of an attack on Syria decreased yesterday and the wire services are saying it might not happen this morning. We will see. Could be a smoke screen to hide an impending attack. If the ES trades asper the norm, TSY’s might just give us a pause day, which is what is expected post an auction week. It is settlement day and the major players are sidelined w/out a major piece of news to drive the trading. Biggest economic news OVN was that China’s export numbers were below expectations. Today’s biggest new will be Consumer Sentiment and this usually doesn’t move the mkt. Today’s news: Consumer Sentiment is expected at 101.0, JOLTS at 6.143 M, Baker Hughes Rig Count at ??? (previously 1114/1003). The focus should be the direction of the ES and Consumer Sentiment. Will play for a trading range mkt today w/a down bias. First sell is 120-16/20 followed by 120-23/27. Cover at 120-09 OB. First buy is 120-09/13 followed by 120-01/05. Exit at 120-19 OB.

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ZB R1-R4: 145-17-145-20, 145-23-145-24, 145-28-146-02, 146-06-146-14

ZB S1-S4: 145-08-145-10, 145-03-145-06, 144-28-145-00, 144-20-144-25



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ES R1-R4: 2675-2678, 21681-2688, 2691-2698, -

ES S1-S4: 2658-2663, 2652-2655, 2640-2646, -

ES Comments: Equities are mixed round the globe w/half up and the other down. No news to drive the trading outside of China’s export miss w/its biggest customers. No news out of the EU/UK. The much talked about attack on Syria may not happen. The OVN news commentary says that the odds of a US attack on Syria are diminishing. Tesla’s stk has rebounded post comments from Musk. Facebook’s scripted testimony before Congress went off w/out a hitch. Trump has been quiet on Amazon too. Buy stks! Today’s news is limited. . Today’s news: Consumer Sentiment is expected at 101.0, JOLTS at 6.143 M, Baker Hughes Rig Count at ??? (previously 1114/1003). The focus should be Consumer Sentiment and technical resistance at 2675, a mkt number. Resistance begins at 2675/80 and support is at 2655/60 as the mkt opens this morning. I like the long side first. IF 2675/80 is rejected, I can trade from the sht side of the mkt. First buy is 2661/66 followed by 2651/56. Exit at 2674 OB. First sell is 2674/79 followed by 2684/89. Cover at 2661 OB.

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Charlies Comments 04-12-2018

Trade Date: 4/12/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-265-120-285, 120-305-121-005, 121-035-121-04, 121-08-121-12

ZN S1-S4: 120-24-120-24, 120-20-120-215, 120-16-120-175, 120-08-120-12

ZN/ZB Comments: Equities began a recovery in London after Asia followed the US’s lead and sold. Trump tweeted that he will decide when Syria will be attacked and it could be later than sooner. The mkts rallied on this tweet. Little news OVN. The EU’s composite IP decreased. Today’s news rarely impacts the trading. Down to Trump’s tweets and comments from China, central banks. Today’s news: Jobless Claims is expected at 230 K, Import Prices at +.2%, Export Prices at +.3%, N Gas Inventories at -11 BCF. The focus will be the 30 Y auction, the direction of equities and news spikes from administration officials and China. Resistance begins at 120-28/121-00 and support is at 120-20/24 as the mkt opens. Will play for a trading range mkt w/support for the 30 Y auction supporting the mkt at some point. First sell 120-27/31 followed by 121-03/07. Cover at 120-21 OB. First buy is 120-17/21 followed by 120-09/13. Exit at 120-31 OB.

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ZB R1-R4: 146-04-146-07, 146-11-146-14, 146-16-146-21, 146-24-146-28

ZB S1-S4: 145-25-145-28, 145-19-145-21, 145-14-145-17, 145-04-145-12



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ES R1-R4: 2657-2662, 2665-2670, 2672-2678, -

ES S1-S4: 2645-2650, 2639-2640, 2630-2635, -

ES Comments: Is the Syrian attack on or off. Trump’s tweet that the Syrian attack could come at any point. He hasn’t said when to date. It could come at a later date. That gives him a lot of room on Syria. And maybe he won’t attack. Syria gassing its own people and the world’s reaction to such does lead to many questions. IT would make more sense if a rebel group staged a gas attack to garner more US support. Time, as always, will tell. Little news OVN. The EU’s economy is showing signs of contraction. Today’s news rarely impacts the trading. Down to news spikes from administration comments and Trump’s tweets. Resistance begins at 2660/65 and support is at 2640/45 as the mkt opens. The first trade favors the long side. IF 2665/70 holds, OK to trade from the short side. First buy is 2646/51 followed by 2636/41. Exit at 2659 OB. First sell is 2659/64 followed by 2669/74. Cover at 2651 OB.

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Charlies Comments 04-11-2018

Trade Date: 4/11/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 121-00-121-02, 121-04-121-06, 121-08-121-12, 121-16-121-20

ZN S1-S4: 120-275-120-29, 120-24-120-245, 120-20-120-215, 120-12-120-16

ZN/ZB comments: The ES is lower and TSY’s/Gold are higher. The impending bombing of Syria is cited as the reason for the Globex moves in the mkts. Last year’s Syrian attack, when it occurred, took equities lower by 1% where buyers bought the dip. TSY’s and Gold were higher until the ES reversed. The rally in equities took both TSY’s and gold lower. Will see if this is the case, if the US does attack Syria. Little news out OVN. Inflation in China was lower, Draghi spoke at 0700 ET and the US does have some news this AM that probably won’t impact the mkts, if close to the forecast. It also appears that the US/China trade war will be averted w/both China and the US conciliatory statements yesterday. Today’s news: CPI is expected at unchanged, Core CPI at +.2%, Atlanta Fed Business Inflation Index at ??? (previously +2.1%), Crude Inventories at -.6 MB’s, the 10 Y auction and the FOMC minutes. The focus should be CPI, the direction of the ES, the 10 Y auction and the FOMC minutes. Resistance begins at 121-00/04 and support is at 120-24/28 as the mkt opens. Will play for anther trading range day given the 10 Y auction. First sell 121-01/05 followed by 121-07/11. Cover at 120-29 OB. First buy is 120-25/29 followed by 120-17/21. Exit at 121-03 OB.

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ZB R1-R4: 146-16-146-18, 146-20-146-25, 146-28-147-00, 147-03-147-08

ZB S1-S4: 146-07-146-10, 146-02-146-04, 145-28-146-00, 145-19-145-25



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ES R1-R4: 26334-2638, 2640-2644, 2650-2655, -

ES S1-S4: 2621-2626, 2612-2617, 2602-2608, -

ES Comments: Equities outside of China’s mkts are lower in anticipation of an attack on Syria by the US and maybe the UK and France. Last year’s Syrian attack took the ES down 1% followed by an intraday reversal as buyers bought the dip. This was the mkt’s mode until 1/29/18, when players quit buying every dip. The impending US attack on Syria, assuming it comes, is all over the press. Russia has threatened to shoot down the US missiles. We will anticipate a rumor fact trading situation w/the mkt sold into the attack, w/shorts covered after the attack is over. The OVN news was limited to speculation about the Syrian attack. Today’s CPI and FOMC news can move the mkts, but I believe the Syrian attack will overshadow the economic news. Today’s news: CPI is expected at unchanged, Core CPI at +.2%, Atlanta Fed Business Inflation Index at ??? (previously +2.1%), Crude Inventories at -.6 MB’s, the 10 Y auction and the FOMC minutes. The focus should be the Syrian war talk, CPI, the direction of the ES and the FOMC minutes. Resistance begins at 2635/40 and support is at 2620/25. I believe there is one more short in the mkt and want to sell into early strength and see if 2620/25 can be taken out. IF not, I can trade from the long side. First sell is 2634/39 followed by 2644/49. Cover at 2621 OB. First buy is 2621/26 followed by 2611/16. Exit at 2644 OB.

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Charlies Comments 04-10-2018

Trade Date: 4/10/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-28-120-29, 121-00-121-005, 121-02-121-05, 121-08-121-12

ZN S1-S4: 120-225-120-24, 120-19-120-20, 120-16-120-165, 120-08-120-12

ZN/ZB Comments: China’s President Xi picked up the mic last night and said that the globalism, free trade, etc. would continue and that China work to open up their economy and change their current laws to speed up the process and to address those issues that needed to be addressed w/their trading partners. Equities round the globe soared OVN. As usual the devil is in the details and China will have to make changes to address the trade issues. If they don’t make major changes, then the equity mkts will get hit again. Today is the 3 Y auction and it usually is supportive for the TSY mkts. The economic news out of the EU showed further slowing. Today’s news can impact the trading. Today’s news: Small Business Optimism Index was 104.7 vs expectations of 107.0, PPI at +.1%, Core PPI at +.2%, Wholesale Inventories at +.2%. The focus will be PPI, the direction of the ES and the 3 Y auction. Resistance begins at 120-28/121-00 and support is at 120-16/22 as the mkt opens. Will play for a trading range mkt this AM. First sell is 120-27/31 followed by 121-03/07. Cover at 120-21 OB. First buy is 120-17/21 followed by 120-09/13. Exit at 120-31 OB.

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ZB R1-R4: 146-01-146-04, 146-08-146-10, 146-13-146-18, 146-20-146-28

ZB S1-S4: 145-22-145-25, 145-17-145-20, 145-09-145-14, 145-01-145-04



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ES R1-R4: 2650-2655, 2658-2864, 2670-2675, -

ES S1-S4: 2641-2646, 2633-2638, 2625-2630, -

ES Comments: China’s President Xi picked up the mic last night and said that the globalism, free trade, etc. would continue and that China work to open up their economy and change their current laws to speed up the process and to address those issues that needed to be addressed w/their trading partners. Equities round the globe soared OVN. As usual the devil is in the details and China will have to make changes to address the trade issues. If they don’t make major changes, then the equity mkts will get hit again. The mkt will be subject to news spikes as Chinese and American officials comments on the potential for a trade war. Toda’s news can impact the trading. Today’s news: Small Business Optimism Index was 104.7 vs expectations of 107.0, PPI at +.1%, Core PPI at +.2%, Wholesale Inventories at +.2%. The focus will be PPI and official comments about the trade war or potential for such between the US and China. Resistance begins at 2655/60 and support is at 2635/40 as the mkt opens this AM. Will play for a trading range mkt driven by trade war talk. First sell is 2654/59 followed by 2664/69. Cover at 2641 OB. First buy is 2641/46 followed by 2631/26. Ext at 2659 OB.

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Charlies Comments 04-09-2018

Trade Date: 4/9/2018 Commentary (delayed until 10.20 AM ET)
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ZN R1-R4: 120-29-121-00, 121-02-121-05, 121-08-121-10, 121-12-121-16

ZN S1-S4: 120-24-120-25, 120-20-120-215, 120-16-120-175, 120-08-120-12

ZN/ZB Comments: Trump tweeted that he thought that China and the US wouldn’t get into a trade war and equities round the globe rallied. TSY’s and gold were lower. The inverse relationship continues and is generally a factor in the first couple of hours of the day session. Will see if it holds this morning. The news over the weekend was limited to Trump’s tweets about the trade war and a report of an attack on a Syrian airbase by Israel. Today’s news slate is clean too. Down to administration and Chinese comments on a trade war. The mkts will be subject to news spikes. Earnings season is upon us and we will get to see the effects of the Trump tax cut. Early comments are forecasting an increase of 5.4% in earnings. No news today. The focus should be the direction of the stk mkts. Resistance begins at 120-30/121-02 and support at 120-20/25. Will play for a trading range mkt w/down bias. First sell is 120-29/121-01. Cover at 120-21 OB. First buy is 120-20/24 followed by 120-13/17. Exit at 120-31 OB.

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ZB R1-R4: 145-26-145-30, 146-00-146-04, 146-08-146-11, 146-16-146-21

ZB S1-S4: 145-16-145-18, 145-09-145-12, 145-02-145-04, 144-25-145-00



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ES R1-R4: 2628-2634, 2639-2644, 2650-2656, -

ES S1-S4: 2614-2617, 2608-2610, 2600-2605, -

ES Comments: Trump tweeted that he didn’t believe that a trade war would develop and that things would be worked out between China and the US and equities rallied round the globe. The mkt’s focus has been the trade war and the problems facing Tesla, Facebook and Trump’s tweets about Amazon. Facebook’s testimony before Congress starts tomorrow. And it is the start of earnings season w/earnings expected to increase by 5% or more due to tax cuts. The mkt will be subject to news spikes from the administration and China on the trade wars and reactions to earnings as they hit the mkts. The weekend news was limited to Trump’s trade war tweets and a probable Israeli attack on a Syrian airfield. Resistance begins at 2630/35 and support is at 2610/15 as the mkt opens this AM. I don’t have a strong feeling either way this AM. Will play for a trading range mkt w/an up bias given Trump’s trade war tweets. First buy is 2616/21 followed by 2606/11. Exit at 2629 OB. First sell is 2629/34 followed by 2639/44. Cover at 2616 OB.

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Trade Date: 12/11/2018 Commentary (delayed until 10.20 AM ET)
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