July 18th, 2012
in Gary's blogging
Opening Market Commentary For 07-18-2012
Again, the premarket was down moderately, like yesterday, and upon session opening it immediately went green on light volume. The climb continued to 10 am with moderate green volume to give the climb some credence. Then the volume started to fall and turn red.
Obviously a Bernanke news driven event this morning with QE 'dippers' driving the markets upward and ignoring unsettling EU news. At this point I would look to a market reversal when 'they' discover Ben's remarks to the House are identical to yesterday's. When the premarket pros indicate a down market and it goes up when the cash crowd in let in tells me someone is wrong and rarely is it the Pros.
SA reports, The Fed chairman doesn't have a "magic bullet" to solve the economy's problems, says Paul Volcker. "There's been too much borrowing, too much indebtedness, too much leverage ... it takes years to work itself out." Bernanke is delivering the Fed's Monetary Policy Report in front of the House today.
The DOW at 10:15 is at 12829 up 23.47 or 0.18%.
The 500 is at 1367 up 3.60 or 0.27%.
The $RUT is at 803.99 up 4.53 or 0.57%.
SPY is at 136.86 up 0.49 or 0.36%.
The trend is moderately positive and the current bias is up.
WTI oil is at 89.35 trading between 89.55 and 88.55 and the bias is positive.
Gold is up today at 1578, trading between 1584 and 1567 with a positive bias.
Dr. Copper is at 3.46 up from 3.43 earlier.
The news out of the EU is not exactly good, but is being ignored in light of Bernanke's testimony.
Here's the link to more details on that IMF report, which says that the euro area crisis has reached a "critical stage":
There are severe downside risks to the outlook, with possible substantial regional and global implications. Reinforced negative bank-sovereign linkages could further weigh on confidence, growth, and public debt trajectories, while boosting sovereign spreads and risk premiums. Depending on the pass-through of weaker growth and financial market stress, the global spillovers are likely to be significant. The potential for failure of a systemic bank, or stalled reform or fiscal adjustment efforts at the country level, could spill into the euro area and beyond.
Ben Bernanke's prepared remarks in today's second session of his semiannual Humprhey Hawkins testimony will be identical to yesterday's, but one thing is certain: the questions asked of the Chairman will be far more colorful, courtesy of the inquiry of such penetrating financial experts as Barney Frank and Maxine Waters et al.
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Written by Gary