Closing Market Commentary For 06-28-2012
Apparently, the market just decided to rise for no reason that I can find, kinda suspect the HFT crowd in a ‘flash explosion’ of some sort. The Merkel comments were long gone, the news of EFSF proposing to buy bonds was hours before that and the JPM is old news. News from some European finance officials evidently sparked the mini-rally that will be erased just as quickly tomorrow morning.
The DOW at 2:30 was at 12450. By4:00 it rose 147 points. A dangerous market to be playing in. Back in January we had these big swings and it cost many traders trying to get the edge. Look for a big correction in the morning after the opening and after all the ‘sheeples’ have bought in.
Apparently, this is what is moving stocks. From Reuters:
European finance officials were working on urgent measures to ease financial market pressure on Spain and Italy, which are too big to bail out, as EU leaders began a summit on Thursday deeply divided over how to resolve the euro zone’s debt crisis.
French President Francois Hollande said on arriving at his first full European Union summit after six weeks in office that he expected agreement on emergency steps to help euro zone partners whose borrowing costs had reached unsustainable levels.
“I have come here to get very rapid solutions to support countries in the greatest difficulty on the markets even though they have made considerable efforts to restore their public finances,” Hollande told reporters.
Three EU sources said work was focused on using the euro zone’s temporary EFSF rescue fund and a future permanent ESM bailout fund to buy new Spanish and Italian bonds as they were issued to underpin their bond auctions.
Only problem: it came out 3 hours ago. And Germany will refuse it if and when there is a press conference.
WTI oil is at 78.46 trading between 77.98 and 80.55.
Brent crude is at 91.90 trading between 91.44 and 93.80 and the bias is negative.
Gold is down today at 1555 trading between 1577 and 1547 with a negative bias.
Dr. Copper is at 3.34 up from 3.30 earlier.
The 500 at the close. All I see is that the previous high(s) was not topped.
The 500 10 minute, two day chart.
The $RUT at the close.
The DOW at the close. The range can’t get any tighter.
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Written by Gary
