Week of Oct 22nd, Nasdaq & Soybean Meal

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Stock Index Corner: Nasdaq 100

The weekly of Nasdaq 100 (Dec Futures) has shown some weaknesses in upside momentum..The daily may correct to first support level of 1680. This may exter some pressure of the big brother S&P 500.

The volatility may still be high in the next few weeks as earnings seasons is still in place.
Oct 25th is significant as FOMC mtg may surprise the markets in its decision.

FOMC expectations—The market is still unanimously expecting no change in Fed policy at the next FOMC meeting on Oct 24. The market now believes there is virtually no chance for a Fed easing through March 2007. The market is discounting an 80% chance of a 25 bp rate cut by August 2007, down from 100% a week earlier.

S&P500:
Big Picture: (monthly): Bullish
Medium term (weekly): Sideways to Bullish
Short term (daily): Sideways to Bearish

Do note that next few weeks of US corporate earnings annoucement may increase volatility of the markets.

Major World Indexes
Weekly MACD Histogram (Medium term): FTSE, Nikkei, ASX - UP (Bullish)

Commodity Corner: Soy Meal Dec
Technical: The Soy Meal has it its XOP at 182. Daily may correct to 178.

Fundamental: The USDA is projecting a 3.3% increase in this year’s soybean crop and a 7.8% increase in the US carry-over, meaning there are plenty of beans to satisfy demand. Soybeans are now 69% harvested, 4 points ahead of the 5-yr avg of 65%.

Trading ideas : (please do your own research and apply your profit/ risk management rules in all trades, please note except options writing, all the other trades may last just several days)
Writing Options: Orange Juice OTM puts
Futures: Short Soymeal Dec
Leap Options: AMGN (long calls), BCE (long puts)