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Wednesday, February 9, 2011

Hump Day, 10:15am

After trading lower overnight, the market opened lower, and currently is trading essentially flat.  The indexes are mixed, up or down less than 0.15%.  Mr. Market is likely taking a breather after 7 straight days of advances.  Oil is up a little at 87.41, Gold is up a little at 1365.8 and Silver is strong, trading at 30.36.  The rest of the commodity complex is up, with Corn opening limit up.  The Pits are finally reacting to the news on Monday that China is expected to buy as munch as 9 Million tons of Corm, vs their previous expected purchases of 1 Million tons.  Now that is a lot of corn!

The Euro is again marching higher, trading at 1.370, while the Dollar resumes its decline, trading at 77.67.  Which brings me to my favorite crashing market.. the Bond Market.  Todays action is a breather for the bond market after breaking the support lines for both the 10 Year Note and the Long Bond.  Today the Note is up about a 1/4 at 3.70 and the Bond is also up about a 1/4, at 4.75.  I have attached below the charts for the price action of the Note and the Bond... you will note that both have now signaled further decline by breaking support with authority.


The SPY has closed for 2 straight outside the upper Bollinger Band....we should be finally getting some correction.  We are still working with the Sell signal of 1/20/2011, although the signal has moved to neutral.  We will continue to wait for a new trading opportunity with either a new Buy signal, or a confirmation of the Sell signal.

Best To Your Trading!

Bill

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