July 17th, 2012
in Gary's blogging
Opening Market Commentary For 07-17-2012
The US markets opened higher on heavy green volume ahead of a speech by Ben Bernanke and then started dropping on heavy red volume. SA reports “At the open: Dow +0.39% to 12777. S&P +0.41% to 1359. Nasdaq +0.52% to 2912.” By 10 am the DOW remained in the green while the 500 and the Russell 2000 went solid red as the volume climbs higher. The RRR** is neutral and not conducive for trading. My bias is still bearish and expect further declines.
US CAPACITY UTILIZATION ROSE TO 78.9% IN JUNE VS. 79.2% EXPECTED. PREVIOUS REVISED TO 78.7% FROM 79.0%.
US INDUSTRIAL PRODUCTION ROSE 0.4% IN JUNE VS. 0.3% EXPECTED. PREVIOUS REVISED TO -0.2% FROM -0.1%.
Moody’s downgraded 13 Italian banks yesterday.
Spain sold 1-year notes at a yield significantly lower than last month.
JNJ reported in line resorts but then cut guidance. The stock is down a buck before the open.
GS easily beat expectations. The stock is up 2.32 before the open.
KO is up almost a buck in premarket trading…earnings related.
Bill Gross says when measured by employment, retail sales, investment and corporate profits, the US is approaching a recession.
Since the index only dropped a couple points yesterday, the picture didn’t change. The market is still sitting near the midpoint of it most recent high and low on both a short and intermediate term basis. Higher highs and higher lows remain in place since the beginning of June, but I’m more neutral than bullis.
The DOW at 10:15 is at 12709 down 20.21 or -0.17%.
The 500 is at 1351 down 2.47 or -0.18%.
The $RUT is at 795.39 down 1.28 or -0.16%.
SPY is at 135.30 down 0.08 or -0.06%.
The trend is neutral and the current bias is down.
WTI oil is at 88.44 trading between 89.25 and 88.00 and the bias is negative.
Gold is up today at 1583, trading between 1599 and 1581 with a negative bias.
Dr. Copper is at 3.46 down from 3.51 earlier.
As reported earlier the USD rose from 83.02 to 83.52 and recovered to 83.51.
** RRR = Risk Reward Ratio
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Written by Gary