Opening Market Commentary For 06-22-2012
Not exactly surprising that the markets recovered a bit after yesterday’s fall, but I don’t expect it to last in light of the really poor economic news pouring in from all corners of the Earth. Yesterday the S&P 500 lost 2.23%, the Dow Jones Industrial Average slipped 1.96% and the NASDAQ dropped 2.44%. O.K. So I said the markets wouldn’t drop more than 1.5% at any given moment, well this morning will correct for yesterday’s fall and give any laggards out there more time to dump the non-performers and pick out a short or two. The fall was as I predicted was not chaotic, but orderly. I believe future moves will also be orderly as the mattress money and what investors ARE NOT in the market and will not effect movements much by selling.
The markets opened up, but cautiously under low volume. By the 10 minute marker the volume was decidedly red and melting down a bit. The MACD was reversing by 9:15 to the downside and volume slid to the anemic side. I would think this would be a perfect time for DaBoyz to run the markets up and make a great bear trap in the process.
As there are no important financial US reports today it could very well turn out to be a golf day, or fishing as the case may be be. By 10 am the markets were relatively stable trading in a narrow range of green but with a slight positive bias as DaBoyz are doing their thing melting the markets up under VERY light volume.
The DOW is at 12656 up 83.63 or 0.67%.
The 500 is at 1333 up 8.14 or 0.61%.
The $RUT is at 770 up 5.33 or 0.69%.
SPY is at 133.18 up 0.70 or 0.54%.
The trend is down and the current bias is up.
WTI oil is at 79.14 trading between 78.90 and 77.55 and the bias is down.
Brent crude is at 91.04 trading between 88.50 and 91.06 and the bias is positive.
Gold is down today at 1567, trading between 1570 and 1563 with a neutral bias.
Dr. Copper is at 3.30 up from 3.27 earlier.
European markets are down today in the wake of continuing poor financial news from the EZ. The FTSE 100 in London is down –0.81% while the German DAX is off –0.68%. The CAC 40 in France is also off at –0.17%. The Asian markets closed down with the Hang Seng at –1.40. The Shanghai Composite also down –1.40%. The Nikkei down –0.29%.
Goodbye European Central Bank. Hello Salvation Army Bank.
Bruno Waterfield says that “a pan-EU financial transaction tax is now dead”:
Today’s meeting of EU finance ministers has killed off the idea of one tax across all the Union’s 27 countries.
Before 9 July, nine EU countries will write a letter saying they want to go it alone, Germany, Austria and France are in the vanguard.
After the letter is received by the European Commission then a proposal will be put to all 27 EU finance ministers.
If two thirds of them are happy that an FTT of nine countries, or more, does not negatively impact on the others then it can go ahead.
Diplomats suggest that an EU-9 FTT will be at the lowest common denominator, which will probably be based on a form of stamp duty.
Officials have noted that it would most likely be set at a lower rate, 0.25 per cent, than Britain’s current stamp duty tax of 0.5 per cent.
Could it be that a European FTT, set at half the UK rate, will start looking rather appealing to financiers based in the City of London?
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Written by Gary