Rally Week

by Larry Levin

Last week's market action proved to be a combination of higher prices with good volume. Can it last?

Since this coming week is light on economic reports, perhaps volume and day-to-day market action will be the most important items to watch? One can argue that the only report that may be able to move the market this week is the ISM services data that will be released Tuesday morning. Other than that, however, some non-report sparks could fly from Fed speakers.

Two influential FOMC members are speaking: Philadelphia Fed President Charles Plosser, who is a voter, and San Francisco Fed President Janet Yellen, who is not. Plosser will speak on Wednesday. Janet Yellen will speak in Hawaii late Thursday (early Friday New York time). Both speeches will be read closely for an explanation of the Fed's current views on the economy.

So will the market continue to rally despite the housing woes? "We're not out of the woods yet," said Deutsche Bank's Fitzpatrick. "The Fed is helping by cutting rates, and that may help financial institutions, but not the pricing of mortgage-backed securities."

This should be another interesting week.

Real Time Trading Signals*for

Trade Date: 2/1/07

E-Mini S&P Trades*
(before fees and commissions):


8:47 VA Sell 87.00= +.75, -1.50

9:22 VA Buy 87.25 = +.75, -1.75

9:29 VA Buy 76.75 = -1.75 all

9:45 ID VA Sell 78.75= +.75, -1.75

10:39 OTF Sell 5.25 = -1.00, -1.50

10:52 VA Sell 7.25 = +.75, -.25, -.25

1:02 OTF Buy 5.50 = b/e all

2:17 OTF BUy +.75, +2.00, b/e

E-Mini Russell Trades*
(before fees and commissions):


1) Buy @ 8:32am at 718.4 = +.5 & -1.2

2) Buy @ 9:11am at 727.6 = +.8 & b/e

3) Sell @ 9:52am at 717.1 = b/e & b/e

4) Sell @ 10:13am at 718.0 = -1.2 & -1.2

5) Buy @ 10:20am at 718.1 = +.5 & +2.0

6) Buy @ 10:41am at 719.6 = +.6 (1 lot)

7) Buy @ 11:11am at 717.9 = +1.5 (1 lot)

8) Sell @ 12:01pm at 718.7 = -1.3 & -1.3

9) Buy @ 12:35pm at 721.0 = +2.6 (1 lot)

10) Buy @ 12:56pm at 723.0 = -1.3 & -1.3


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