Closing Market Commentary For 06-11-2012
This market is liken to a car with one flat tire. It has every intention of stopping but won’t, driving the occupants nuts. This market has finally given up the ghost I think and should have month ago.
I write this partially in jest, but keeping a keen eye open for any sudden injections of ‘hopium’ driving the markets up and beyond. Personally, I say it can’t happen, but I know better and I suggest you consider the options of a fluctuation market before making any trades, especially longs. Keep your trades close to the vest until September time frame when some excellent longs will be available. About 2 pm I informed our premier subscribers that I was increasing my SQQQ 2% at 52.30 and getting some TZA 2% at 21.62 and keep previous purchase SRTY at 1%.
The Telegraph reported, “Dennis Lockhart, the chairman of the Atlanta Federal Reserve, has described the Spanish bank bail-out as “good news,” but that markets were still expecting more detail on the bail-out.
On the possibility of QE3, Mr Lockhart said that more money printing wasn’t needed “quite yet”. However, he added that no policy tool should be taken off the table just yet.” Well the 100 billion bailout is like quail hunting with a BB gun although you might get lucky.
The USD is rising currently at 83.06 and the Euro is at 1.2481 and falling.
The DOW closed at 12411 down 143 or -1.14%.
The 500 closed at 1308 down 16.73 or -1.26%.
The $RUT, the big loser, closed at 751 down 18.18 or -2.36%.
SPY closed at 131.21 down 1.89 or -1.42%.
The long term is down, the short trend is down and the current bias is down.
WTI oil is at 81.50 after falling from its Friday high of 86.64.
Brent crude is at 96.75 currently falling from its early morning high of 102.25.
Gold is down today at 1597, trading between 1601 and 1582 today.
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 3.31.
The markets are still in a decision zone and one must be carful.
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Written by Gary
