July 26th, 2012
in Gary's blogging
Closing Market Commentary For 07-26-2012
Another interesting day and another interesting market reversal. What made it intriguing is that it was predictable, well almost. Yesterday afternoon I reluctantly held off getting a short position – good call. The problem I see now is that we may have more such reversals but the net effect is going to be a sideways market. That is until August 30th when Greece is supposed to default and September 12th when the German High Court hands down it decision on whether Merkel could make decisions determining Germany's financial future as she promised.
Leavitt wrote this morning, “I’m sticking with my defensive conservative nature until either 1) some of the headwinds are dealt with or 2) the charts clean themselves up. More after the open.” and I agree. This market has only given us several trading solutions in the past several months and remains difficult to understand the rotations going on lately pushing the SP500 as Leavitt mentioned below.
“. . . the S&P is capable of masking what’s going on under the hood. You’d probably guess most stocks are churning in place, but that’s not the case. Many have taken big hits. Kind of makes you wonder what kind of math their using to calculate this curve because I don’t think it’s reflective of what’s been going on.”
The DOW at the close is at 12887 up 211 or 1.67%. (Regained 75% of morning losses.)
The 500 is at 1360 up 22.13 or 1.65%.
The $RUT is at 777.11 up 7.80 or 1.01%.
SPY is at 136.06 up 2.11 or 1.58%.
The trend is up and the current bias is neutral at the close.
WTI oil is at 89.46 trading between 88.10 and 90.50 and the bias is neutral.
Brent crude is at 105.42 trading between 103.50 and 106.15 and the bias is neutral.
Gold is at 1615.88 trading between 1601 and 1621 with a neutral bias.
Dr. Copper is at 3.39 up from 3.36 in premarket trading but down from 3.44 at the markets open.
The USD tumbled from 83.84 in the premarket hours to 82.67 and is at 82.89. As it dove this morning it covered the gap at 83.61 in a spectacular fashion AND reached support where it has bounced off of. Bearish for the US markets and the Euro.
The 500 at the close.
The DOW at the close.
Report a bit shortened today as I have to join my wife at the Doctor's office for a minor out patient procedure.
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Written by Gary