ESZ8 DECEMBER EMINI SP500 DAILY:

Dec 1- Construction spending for October 2008= -1.2%. This data goes directly in the GDP report. Nonresidential construction is about 4% of GDP. With trade balance last month showing a slow in exports which takes away from the one thing that has been helping GDP this year, the construction number was another slap in the face. Amid another report brought by a panel of economists confirming the US has been in a rescession since December 2007 doom and gloom proceeded the markets as the SP started the month of December by resisting 900 and falling by more than 80 points. New claims for unemployment are at high levels and the outlook is poor. Firms cutting back on jobs are going to defensive mode as the economy continues to contract. New claims have been in recessionary levels for some time now and this does play well for fourth quarter payrolls or GDP. The market expects initial claims on Thursday to show 540k up from 529k from the prior report.

ESZ8 DECEMBER EMINI SP500 WEEKLY:

YMZ8 DECEMBER EMINI DOW JONES INDUSTRIAL AVERAGE DAILY:

Back inside the range once again. Notice "A" where the market tested and held our trend line after breaking 7800. Short covering, "holiday"optimism, and very light trading from the Thanksgiving holiday helped push off these lows and move back outside the upper part of the range. This 'false' breakout has quickly faded as the market pulled back inside the trading range today as reality sets in that more people continue to lose their jobs and credit remains tight for many.

CLF9 JANUARY LIGHT SWEET CRUDE OIL DAILY:

October lows continued to play their part as resistance as the market forged to make new lows and push into the lower 50s. Confirmation by a panel of economists that the US markets have been in a recession since Dec of 2007 helped drive crude lower by more then $5. The market in afterhours has broken November lows (48.25) and is flirting with the idea of moving lower. Demand turning into negative territory for the first time in over 2 decades adds additional downward pressure on prices. According to OPECs Secretary General Abdullah al Badri, OPEC has only taken 850,000-1.2 million barrels per day off the market of the 1.5 million agreed to at October’s meeting. Roughly 60% compliance is the usual rule of thumb on OPEC cuts. The organization will meet for the 4th time this fall on December 17th, in my opinion there will be talks about how to get members more in line on the cuts they promised as well as the potential for further cuts in production.

GCZ8 DECEMBER GOLD DAILY:

Last market update we noted golds ability to hold above 680 as the dollar index made a new high appeared to be somewhat positive for the gold bugs. As the dollar index pulled off of the highs from 89 to 85, gold saw technical buying as it broke above 760 before meeting with resistance at its 100 day moving average (835.60). Since it has now retraced and is testing its breakout point. The level will need to hold for bulls to reattempt another shot to the upside.

SIZ8 DECEMBER SILVER MONTHLY:

As many of the other commodity charts look, the Silver is stuck within a bearish flag formation. The way to play this market in my opinion is to strangle it.

DXZ8 DECEMBER US DOLLAR INDEX DAILY:

As the dollar index continues to trade range bound, I noticed the chart is very similar to that of the .... Volatility Index:

$VIX VOLATILITY INDEX DAILY:

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS. AN INVESTOR COULD LOSE MORE THAN THE INITIAL INVESTMENT.

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