Two Trends

by Larry Levin

There were two pronounced trends today; the S&P first trended higher then it suddenly reversed. These trends were caused by two opposite outlooks on the economy.

This morning the Conference Board's released the leading economic indicators (LEI) report, which showed a 0.1% rise for April. The index is supposed to predict future economic activity, hence the name, in the next three to six months. This report encouraged investors, possibly signaling that, although the economy is weak, it is positioned for recovery.

"The market seems to be defying gravity here, rising on light volume and very little good news," said Marc Pado, market strategist at Cantor Fitzgerald.

This afternoon SanDisk issued cautious comments at a JPMorgan technology conference that made the markets reverse. That and an even higher oil price, setting another record, caused the reversal. Wait a minute, oil only makes stocks go up when oil falls - my bad.

Real Time Trading Signals*for

Trade Date: 5/19/08

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

1) VA buy @ 8:35am at 1425.00 = b/e (1 lot)

2) OTF buy @ 12:30pm at 1438.25 = -2.00 (1 lot)

3) OTF sell @ 2:00pm at 1431.00 = +5.75 (1 lot)

4) Algorithm trades (5)...combined total...+6.25

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


1) Sold @ 8:48am at 738.0 = -.7 (1 lot)


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