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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