Opening Market Commentary For 06-11-2012
Never can tell what Mr. Market is going to do, as you probably know. What is obvious to us mere mortals is not always evident to the crooked forces that pull the strings behind the curtain, but I’ll save that rant for another day.
Many felt that the 100 billion bailout to the Spanish banks would have produced a large gap up today and I have been saying , “not so fast”. And sure enough as the European markets wind down for the day the premarket futures lost some of their ground. Within minutes of the US Market opening a lot of red volume started to build. By the 10 minute market it was moderate and the $VIX dropped below 20 for a brief moment and continued its climb beyond 21. The DOW and the 500 opened at 12650 and 1335 respectively and withdrew to Fridays sessions highs is short order. Both the SPR and $RUT gaped up a tad and quickly found their candle red and they descended in the opening minutes.
At 10 am the markets were still falling and the red volume is falling off. China’s reporting its trade balance (18.70B, expecting 16.25B), Imports (12.7) and exports (15.3) this morning was weak, but not disastrous. The Asian markets closed up with the Hang Seng up 2.24%. The European markets are also higher today with percentages in Germany leading the region. The DAX is up 1.43% while France’s CAC 40 is up 1.13% and London’s FTSE 100 is up 0.42%.
The USD is rising currently at 82.72 and the Euro is at 1.2549 and falling.
The DOW is at 125842 up 28.86 or 0.26% and falling.
The 500 is at 1327 up 2.30 or 0.17%.
The $RUT is at 768 down 0.57 or -0.07%.
SPY is at 133.32 up 0.24 or 0.20%. The long term is down, the short trend is up and the current bias is down.
WTI oil is at 84.11 after falling from its Friday high of 86.64.
Brent crude is at 99.63 currently falling from its early morning high of 102.25.
Gold is down today at 1585, trading between 1608.25 and 1503.81 with a negative bias.
Dr. Copper’s chart formed a black cross with the 50 day MA crossing the 200 day MA. It fell from its early morning highs of 3.39 to 3.34.
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Written by Gary