June 13th, 2012
in Gary's blogging
Closing Market Commentary For 06-13-2012
Markets appear to be consolidating say some analyst, but for what I can't begin to guess. From the low volume it appears to me that everyone is sitting on their hands waiting for someone else to step forward first. Unlike the European markets, the US markets closed down and trading was in a very tight zone. Our shorts are in positive territory but waiting like everyone else.
Some minor profit taking occurred starting around 2 pm and accelerated into a full blown decline to just below today's opening. Red ink all over the place setting up a good bear trap for tomorrow.
This market is really 'A Horse With No Name', full of 'hopium' and no direction. Follow up:
Read at Dailyfx, “FORMER FED CHAIRMAN GREENSPAN: Europe will get worse before it gets better.” And that translates into more market downfall.
EGAN-JONES: Downgrades Spain from B to CCC+, negative outlook. Spanish debt now rated in JUNK territory.
While Fitch’s was prudently downgrading 18 Spanish banks on Tuesday, U.S. stocks were thundering higher, recouping about two-thirds of Monday’s sharp losses. Wall Street’s irrational exuberance aside, news sources around the world seem to be catching on to the fact that rising share prices do not necessarily portend a solution to Europe’s deepening financial crisis
. . . Spanish debt seem to call for an even bolder solution. Rates on the 10-year were at 6.72% Tuesday, up a steep 6.52% from the day before. This is a euro-era record for Spanish paper, and it makes clear that investors are not willing to suspend their skepticism that a mere $125 billion loan can somehow tide things over for more than a day or two, if that long.
In fact, this token sum has bought just a fleeting blip in share prices around the world – a blip powered almost entirely by short-covering bears, not by investors who actually believe Europe is getting a grip on its problems.
WTI oil is at 82.38 falling below its high of 83.98 earlier this afternoon.
Brent crude is at 96.89 currently, drown from 97.90 and has a positive bias.
Gold is up today at 1617, trading between 1607 and 1623 with a positive bias.
The USD fell most of the day from 83.02 to 82.58.
The DOW is at 12496 down -77.42 or -0.62%.
The 500 closed at 1314 down -9.30 or -0.70%.
The $RUT closed at 752.38 down -9.15 or -1.20%.
SPY closed at 132.17 down -0.75 or -0.59%.
The short term trend is neutral and range bound and the current bias is down as with the longer term.
The SP500 at the close. You can clearly see the range bound zone, black cross and bearish trend down.
The DOW at the close. You can see what happened the last time we had a sideways movement. I expect it to happen again – soon.
SPY at the close.
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Written by Gary