Closing Market Commentary For 06-27-2012
Markets closed up but on very low volume. There was some profit taking towards the session end and only enough to take it slightly off of the day’s highs. For the past several sessions I have referred to a market sideways movement when actually it is a modified sideways movement in that the volume is quite low but the markets rise. This rise can be attributed solely to the HFT and other market manipulators in the game of self-serving interests. I would urge caution in jumping on this band wagon as the piano isn’t tied down. One bump and everything will be on the road beside you. If you are lucky you won’t have the piano fall on sensitive body parts. I am telling you this because I can see the big bump just ahead; don’t say I never told you.
This market should be melting down not up, but be careful as the turns can be painfully quick. The RRR** has been very narrow for any chance of a profitable day trade and the swing traders are quickly coming into fertile ground for shorting again. Importantly it needs to be noted that we are in a no-mans land where the markets can easily go up a bit more or down some. I am beginning to think we are not going to see any action until the EU meets in July. Volumes continue to decline each session as no one seems interested on betting on big moves ahead of summit. Not too far away, but for some reason a lot of investors I think really believe we are going to see monkeys fly out of their butts or some other hocus-pokus that will be the saving grace of the EURO. Forget it folks, it isn’t going to happen and you had better dump your dogs if you haven’t already.
The SP500 at the close.
The $RUT at the close.
The DOW at the close.
WTI oil is at 80.46 unchanged trading between 78.68 and 80.75 and the bias is neutral.
Brent crude is at 93.59 unchanged trading between 91.75 and 93.84 and the bias is neutral.
Gold is down today at 1574 unchanged trading between 1581 and 1555 with a neutral bias.
Dr. Copper is at 3.34 up from 3.31 earlier.
“ For tomorrow:
US GDP will be released at 8:30 a.m. EDT tomorrow. The consensus first quarter GDP is 1.9%. In addition, Great Britain will be releasing GDP at 4:30 a.m. EDT tomorrow. Great Britain is expected to report year over year GDP of -0.1% and quarter to quarter GDP of -0.3%.
Italian CPI will be released at 5:00 a.m. EDT tomorrow morning. The consensus increase is 3.2%, which is in line with last month’s number.
The US jobless claims report will be released at 8:30 a.m. EDT tomorrow morning. Initial jobless claims are expected to be 385,000.
The US Supreme Court is expected to released their ruling on “Obamacare” at 10:00 a.m. EDT tomorrow.”
** RRR = Risk Reward Ratio
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Written by Gary
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