Charlies Comments 04-18-2018

Trade Date: 4/18/2018 Commentary (delayed until 10.20 AM ET)
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.

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

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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