Morning Call: Markets Look to Break 3-Day Losing Streak

US stock futures are nearly flat Friday morning following three straight days of losses for the Dow and S&P. Investors and traders could be taking some profits after the S&P has gained more than 10% in the first quarter of 2012. Technically, this is an area to be more cautious and get in “wait-and-see” mode. After closing below the 10-day moving average yesterday, we could probe some slight deeper support levels before traders come in to buy the dip.

There is news today that Federal Regulators are probing high frequency trading firms and whether they have taken advantage of close ties with exchanges to short change other market participants. Specifically, the SEC is looking at whether there was illegal communications between firms and exchanges attempting to limit competition or manipulate markets.

European markets were higher overnight as they looked to also snap a three-day losing streak, but have given back those gain in the last several hours. Concerns continue to grow about a bigger than expected slow-down in China. While all eyes have been trained in the circus on Europe, the potential collateral damage from a China slow-down has not been discussed as extensively. China is a major consumer of natural resources, and slower growth will likely hit related assets the hardest.

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all tradingstrategiesfor the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been tradingequities for more than 10 years and has more recently received widespread recognition from the financialcommunity for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young tradersin the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Businessand Bloomberg, and he has been quoted in the Wall StreetJournaland Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers.

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*DISCLOSURES: Evan Lazarus is short (NYSEArca:UPS).

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