Live Market Commentary For 05-30-2012

May 30th, 2012
in Gary's blogging

After market Closing Commentary:

Markets closed down for the day. One of those days that you are glad to see go away, not because of a big losing one, but one not quite ready for prime time. Can't tell if it is going up or down and I am not going to place any bets for dfay trading. Swing traders might come out O.K. As either way, long or short you have a good chance to get your money back if you bet incorrectly.

The DOW is at 12420 down 160.83 or -1.28%, the 500 is at 1313 down 19.10 or -1.43%, the $RUT is at 762 down 15.16 or -1.95% and SPY is at 131.44 down 2.28 or -1.68%. The trend is down and the current bias is down.

Follow up:

Gold is up to 1564 with a positive bias. WTI oil is at 87.50 with a negative bias. Brent crude is at 103.19. The EURO closed way down at 1.2372 and the USD closed up at 92.13, bad news for the markets trying to move up. After market futures took a hit but on low to medium volume and might not mean much for tomorrow. (@4:30 the markets are still selling off and SQQQ has jumped to 53.43)

The big news, chart wise, is that the 50 day MA crossed the 100 day MA on the Russell 2000 and the DOW is about to cross too. If you ever needed any reason to go short this might be a good time. I got some SQQQ at 52.84, just hope I don't have to watch it go up too far should Mr. Market decide that he needs to scare me. The markets could go up just as easily as down at this point and this makes me a swing trader as I will have to hold on longer than a day. One way or the other the markets will retrace to at least the supports and 200 day MA at which time I will ascertain what the market will do then.

The SP500 at the close.

The $RUT at the close. Notice the Black Crossing.

The DOW at the closing. Another Black Crossing in the making.

The Indexes at the close.

Mid Morning Report And Commentary:

Markets opened lower with medium red volume tapering off with some 'dippers' jumping in for bargains. Not much to add as we are in a 'flux' zone where anything can happen. ETF long and shorts risk antipathy is high and traders need to take the back seat. From a short term aspect shorting may be your thing as there is certainly more falling to do, but it may not be this week as the new channel hasn't been topped. Swing trading will certainly tie up your assets if you guess wrong. 'Casino trading' is in full swing today.

The DOW is at 12436 down 143.00 or -1.13%, the 500 is at 1315 down 16.54 or -1.25%, the $RUT is at 765 down 11.91 or -1.54% and SPY is at 132 down 1.71 or -1.23%. The trend is down and the current bias is down.

Gold is down to 1539 with a negative bias. WTI oil is at 88.36 being as low as 88.16 this morning. Brent crude has been falling all morning and is currently trading in the 103.73 area. The EURUSD pair falls below 1.2400 for first time since July 1, 2010.

Premarket Commentary:

To start the morning off we have from Foxnews the following.

Mounting concerns about Spain's embattled banking sector and access to capital on the private market, coupled with reports that China isn't preparing a fresh round of stimulus, are sending U.S. stock-index futures skidding into negative territory. Dow futures are 102 points, or 0.79%, to the downside, while S&P 500 futures are down 0.9%.”

In fact the SP500 is down to 1322 after closing at 1332 yesterday. The DOW is off 95.00 and the NASDAQ is off 18.50.


Spanish yield surge halted. Spanish 10-year bond yields were +20 bps to 6.64% and past pre-ECB LTRO levels but off earlier highers following the "banking union news." Yields surged after Egan Jones downgraded the country's debt further into junk status and following a now denied report that the ECB has rejected a government plan to tap central bank cash to rescue Bankia. Meanwhile the EU may give Spain an additional year to meet its budget deficit target of 3%.”


EUR/USD May 30 Market Jitters Continue on Spanish and Italian Funding Issues

Euro USD is continuing its downward spiral. Fears are rising that Spain may be forced to ask for an international bailout, as the recession and banking crisis continue to take their toll on the economy. mount together with yields. In Greece, the EFSF injected 18 billion euros into the country’s struggling banks. This may shift the focus away from the troubled nation for now, but capital continues to move out of the country. Is the Grexit an irreversible process? Yesterday’s US Consumer Confidence data was weak, hitting a five-month low. In the Euro-zone, the M3 Money Supply came in at 2.5%, well below the market forecast. Today’s key indicators include an Italian Bond Auction, a speech by ECB head Draghi and US Pending Home Sales.

Read the rest of the article EUR/USD May 30 Market Jitters Continue on Spanish and Italian Funding Issues

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Written by Gary

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