As on of my fellow traders wrote today, “I don’t care which way the 500 moves, just move in a direction.” We continue to sit just below the upper resistance the markets refuse to test it further. Like you, I have watched every day after day, the same old going nowhere, low volume watching growing market grass scenario. Just like the movie ‘Groundhog Day’ as we see a complacent, lack of interest and generally a re-make of the day before.
The 500 has traded in a ~4 point range.TZA in a 0.26 range and SSO in a 1/2 point range in this really lackluster day.
The 500 closing
The DOW closing.
The Indexes at close.
Here is the USD for the day. Notice the gap up from Friday. In the FX world these gaps a covered rather quickly unlike ones in the stock market. Because of this I am still concerned with the markets reacting positively to a fall in the USD. Something to watch for in the very near term, like in days.
(USD 30 min chart)
US Treasury Department says last month’s budget deficit was $232bn (versus an expected $229bn), with government expecting the deficit to reach $1.3 trillion when the budget year ends on September 30. The markets did act favorably to the news by showing a bit of green, but it was muted and just slide sideways. The politicians in Washington agree that the Federal deficit is not sustainable, but are unable to agree on any solution as they kick the can, again, down the road.
Well you all knew the Greek drama would continue on as well as the other 10,000 damnation stories coming out of Europe. Here is one from Zerohedge.
The Greek PSI Lawsuits Begin
“You didn’t think investors would voluntarily give up on the potential to generate returns between 50% and 333% now did you following the ‘coercively voluntary‘ (aka Schrodinger Spanish Inquisition) Greek debt exchange?”
@telegraph: “Reuters is reporting that German lawyers representing 110 Greek bondholders are to sue Greece and banks over debt swap.
The Hamburg legal firm said most of the investors had spent €100,000 to €500,000 on Greek paper, although the highest investment reached €3m.”
I ask myself, was it really worth coming to work today? As a trader don’t you get complacent because YOU KNOW this market we have been watching won’t last. Last post, drive home carefully. See you tomorrow
Written by Gary
Leave a Reply