To June: Good Riddance?

by Larry Levin

Today was another mixed-session as the bulls and bears grappled all day. When the dust settled, the indices closed with minuscule gains on the last day of the month and quarter. It is being said everywhere (TV, print, & internet), good riddance to June, because the market tanked. However, what if you were flat? What if you were short? If you followed the trend, you not only would have exited the month unscathed but probably racked up profits like we did.

There was grappling in the NYMEX pits and online in the oil market as well. After hitting a record high above $143.67 a barrel overnight, crude oil futures finished down 21 cents at $140. Will it reach $150 by Thursday?

There was a sector today that did not grapple with the long side: the financials. Financial stocks continued to weigh on the overall market, with the sector losing 2.2%, the worst performer of the S&P 500's 10 sectors. The financial sector is down nearly 30% for the year so far.

Lehman is a teenager again. It traded briefly below $20-share for the first time since early 2000. However, the increased selling at the close took Lehman out at $19.81 to cement a -10.97% loss for the day.

Morgan Stanley closed -1.7%, Merrill Lynch -3.0%, and Citigroup was hammered another -2.84%.

Now that the quarter has been closed out, I think we will see a few less choppy days and better intra-day trends. And since it has been beaten up so much, you shouldn't be surprised to see a few light rallies. If so, be prepared to nail the crest and ride the next wave lower. Whatever happens, I'll follow the trend.

Real Time Trading Signals*for

Trade Date: 6/30/08

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

1) VA sell @ 9:55am at 1288.00 = +1.50 (1 lot)

2) OTF sell @ 1:20pm at 1287.00 = +1.50 & +3.50

3) OTF sell @ 2:05pm at 1282.75 = -2.00 (1 lot)

4) Algorithm trades (6)...combined total...+3.00


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

1) Sell @ 11:48am at 699.4 = b/e*2

2) Sell @ 1:10pm at 695.2 = -.6 (1 lot)...-$60


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