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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