Opening Market Comments For 06-29-2012
My last nights closing comments “Big Correction Down Tomorrow Morning After The Open” were really made in jest but not clarified. To me it seems this crazy market will move one way or the other on just rumors and makes sensible investing ludicrous. EU leaders made proposals yesterday that excited the markets, but the major problems are still there. One of which is the VERY high unemployment and the other is Germany. Germany's Merkel is NOT about to swallow a poison pill just for the sake of the other failing countries that make up the EU. I believe after the dust settles we will, again, see the light at the end of the tunnel and it will be the Euro Express steaming full speed into destruction. It probably would be best not to be on the tracks.
The markets did open up on yesterday's news that the EU Summit was going to agree to a set of proposals, mostly taxes, that will in their opinion stop the debt issues now facing most of the EU. But the realization is that this talk came mostly from the Socialist French President and will soon fade into reality when the German Chancellor Merkel puts things into perspective.
The RRR** made a nice move to the positive side and now would be a good time to consider shorting or building on your shorted positions, I am.
European policymakers have reportedly agreed to a set of proposals that, if implemented, could turn the tide in the battle to arrest the spread of the region's debt contagion.
First, European leaders have reportedly agreed to renounce seniority on loans extended to Spain to bailout its ailing banks.
Second, policymakers in Europe agreed to allow ESM funds to be directly injected into struggling banks, bypassing the sovereign middleman.
The markets opened up on low volume which intermediately turned red and moderate. The fall was more of a melting as the bulls that bought in yesterday's panic rise are slow to give up their gains. For the first half hour we saw mostly profit selling and some buying from the 'dippers' keeping the markets from falling completely apart. Be ready for news from Merkel that will dampen the euphoria of 'Hopium' once again being injected into the hapless. The long term remains bearish.
The DOW's high was at 12795 and at 10 am it is at 12806 up 204 or 1.62%.
The 500 high was at 1350 and at 10 am it is at 1353 up 24.05 or 1.81%.
The $RUT high was at 790 and at 10 am it is at 791.39 up 15.53 or 2.00%.
SPY high was at 135.29 and at 10 am it is at 135.29 up 2.49 or 1.87%.
The trend is up and the current bias is up.
WTI oil is at 82.08 trading between 78.40 and 82.08 and the bias is positive.
Brent crude is at 95.47 trading between 91.84 and 95.70 and the bias is positive.
Gold is down today at 1598, trading between 1568 and 1600 with a positive bias.
Dr. Copper is at 3.48 up from 3.34 earlier.
Personal spending remained flat in May from April as expected while personal income rose 0.2%, also as expected.
U.S. stock-index futures are extending a global rally as traders respond to measures taken by eurozone leaders aimed at easing the currency bloc’s debt crisis. Dow futures are up 144 points, or 1.2%, while many eurozone bourses are up more than 2%.
European markets are up today in the wake of EU Summit news coming from the EZ. The FTSE 100 in London is up 1.53% while the German DAX is up 1.92%. The CAC 40 in France is also up at 2.34%. The Asian markets closed up with the Hang Seng at 3.11. The Shanghai Composite up 0.06%. The Nikkei up 1.50%.
** RRR = Risk Reward Ratio
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Written by Gary