Weekly Market Summary For
Week Ending Dec. 2, 2005
BY AL MARTIN
Trading results by Insider Intelligence traders for the week of Nov 28 - Dec., 2005:
In Monday’s trade, we SS-2 CCH 1400 C 1390, L-2 LBF 323 S 324.50, L SIZ 8.22 S 8.27, SS DXZ 92.25 C 92.03, SS HGZ 2.00 C 198.00.
In Tuesday’s trade, we went L-2 LBF 324 S 325.50, SS-2 HGZ 204 C 203, L DXZ 91.07 S 91.37, SS-2 CCH 1415 C 1405, SS CLF 57.10 C 56.85, L DXZ 91.50 S 91.75, SS-2 HGZ 204.00 C 203.40, L DXZ 91.42 S 91.62, SS-5 OJF 118.50 C 118.00, L-2 USZ 112.15 S 112.19.
In Wednesday’s trade, we SS-3 SBH 12.40 C 12.30, SS-5 OJF 119.50 C 119.00, L-2 USZ 112.14 S 112.18, L-2 USZ 112.06 S 112.10, L-2 USZ 112.08 S 112.12, SS-3 SBH 12.50 C 12.40, L USZ 112.08 S 112.12 (after market close).
In Thursday’s trade, we SS-2 HGH 192.50 C 191.50, SS CLF 57.50 C 57.25, SS-2 HGH 195.00 C 194.00, SS-2 LBF 336.50 C 334.00, SS CLF 58.00 C 57.50, SS-5 OJX 123.50 C 123.00, L-2 CCH 1426 S 1443, L-2 DXZ 91.55 S 91.75.
In Friday’s trade, we SS-2 HGH 2.02 C 198.00, L-2 DXZ 92.17 S 92.27, SS HGH 2.00 C 1.99 (twice), L-2 USZ 112.00 S 112.04, SS CLZ 59.15 C 58.90.
Total number of positions traded: 42
Total number of lots: 72
Aggregate gross profit: $9,550 ($7,850 net)
Total unrealized losses realized: $4,950 (net)
Unrealized losses carried forward: $2,780
Last week saw the SPX trade in a 19-point (1245.50-1268.50) regular session range, settling out the week at 1265.08, down 3.17 points, week over week, as market fundamentals, off the economic calendar, exited the week with a net positive reading, with, however, the 90-day moving average of market internals continuing to deteriorate, allowing the SPX, mid-week, to pull back to 1250, as we had predicted it would, in last week’s market summary, wherein we covered our short SPZ position, on Wednesday’s closing bell, just below 1251, scalping a 10-point net profit on the trade.
We look to next week’s ECR’s for fresh shorting opportunities on rallies, mindful that domestic equity markets remain in a seasonally weak period, until Wednesday, December 14.
As to the early-week calendar:
Traders should be focusing on Monday’s Nov. ISM (non-manufacturing) number, and Tuesday’s revised Q3 productivity & PULC, for trading points.
In other market trading action last week:
The USZ contract provided excellent long-side scalping opportunities on sell-off’s back to the 112.08-112.12, and below, range, with continuing shorting opportunities on rallies back to 113.00, or better, with the DXZ contract also providing excellent long-side scalping opportunities on sell-off’s to 91.50, or lower, and renewed shorting opportunities on rallies to 92.20, or better.
The HGH contract, which began to look tired, late week, provided excellent shorting opportunities on rallies to 2.00, or better, covering back on dips to 198.50, or lower.
The CCH contract provided good two-way scalping opportunities, on heightened volatility due to a rumored Brazilian crop damage, closing out the week at 1478, making the contract near-term overbought on both a fundamental & technical basis.
Also, the KCH contract provided good shorting opportunity on rallies throughout the week. However, basis Friday’s 94.75 close, the contract is at key support levels, which, if held, will likely engender a trading bounce back to the 1.00 area.
The SBH contract experienced an upside blow-off, late-week, providing excellent short-scalping opportunities, in Friday’s trade, on rallies to 13.00, or better. Traders should be careful trading the SBH contract from the long side, in that the contract is now severely overbought, at current levels, relative to its underlying supply/demand equation.
Further, the OJF contract also experienced an upside blow-off in Friday’s trade, to trade to an intra-day high of 127.90, before falling back, late-session, providing excellent shorting opportunities on any re-test of the highs, in the coming week’s trade.
The LBF contract, which moved steadily higher throughout the week, including a limit bid session in Thursday’s trade, provided good shorting opportunities, in Friday’s trade, on rallies above 342, as the contract is now extremely overbought, relative to its underlying supply/demand equation.
As always, we welcome subscriber e-mails, and we remind subscribers of our year-end sale on copies of both “The Conspirators” & “Bushwhacked,” for the price of one, which begins on Friday, December 9th.