Yawn

by Larry Levin

Wow, Friday's trade was probably the slowest I have seen in quite a while. I wouldn't doubt that the volume and range of the June S&P futures goes down as the lowest of the entire year. This sort of sleepiness can often indicate a large move soon thereafter, perhaps this Monday or Tuesday.

The early news came out "as expected" so it was ignored, but so was the good (and surprising) news from Dell. The first of the early economic data came from the Commerce Department which said that personal incomes, consumer spending and consumer prices all rose 0.2% in April. When consumer price increases eat up 100% of your meager income gains for the month as the data suggests, it indicates a further weakening of the economy in the next quarter.

Later data said U.S. consumer sentiment dropped in May to its lowest level in 28 years, according to the University of Michigan/Reuters index. This horrifically bad news via the consumer sentiment report, and keep in mind that consumer spending makes up about 70% of GDP, was "expected" and therefore is now irrelevant. Isn't that convenient?

Although shares of Dell posted a large 5.7% gain Friday, it did not spread throughout the indices like many had hoped. Dell posted strong first-quarter results, suggesting that the once-stumbling PC giant is back on track after years of disappointments.

This coming week is full of important economic data, especially Monday, Wednesday, and Friday. However, Friday's monthly payroll data will be, without question, the most important piece of this economic puzzle we have seen in weeks. Be prepared when Friday comes.

Real Time Trading Signals*for

Trade Date: 5/30/08

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

1) Engf sell @ 10:25am at 1399.50 = -1.00 (1 lot)

2) OTF buy @ 12:10pm at 1401.75 = +1.25 (1 lot)

3) Algorithm trades (5)...combined total...-2.00

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


1) Sell @ 8:58am at 743.9 = +.5 (1 lot)

2) Sell @ 10:50am at 745.3 = -.5 (1 lot)...$0


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