After being higher in overnight trading, the first call had the market higher, then about 7:30, the early trading turned soft and the Dow gaped down 15 on the open. at 10:30am, the Dow is off 22, the SPX is off 6.32 and the rest of the major indexes are also down around 0.5%. The Euro is weak this morning, and the U.S. Dollar is having its best performance in a number of days, trading up 0.40% at 75.73 TheYen has stabilized vs the Dollar and the Euro after Central Bank intervention, which has put an end to the unwinding of the Yen carry trade.
Not sure what happened overnight to the Oil market, but this morning, WTI is trading up at 105.79. I would swear that Oil closed yesterday at 102 and change, but the price report only shows it up .69. Gold is also higher at 1433.80 and Silver is making a run on the post-Hunt Bros high, trading at 36.55. Copper is trading higher, and looks like it has put in a IHS bottom, and is trading higher at 4.415, Copper has led the market for most of the past year so this new strength may be telling us the market is ready to also move higher. The soft commodities are mixed, with Rice being a leader, up 2.0%. The 10 year Note is higher, trading at 3.285 and the long Bond is also higher, at 4.400
After a couple of days where the news out of Japan seemed to indicate that TEPCO had gotten the Nuclear disaster under control, it now appears that the melt down in #2 continues and is burning again. Workers have been withdrawn and it is reported that although the "Power cord" was finally installed, is not connected to a power source. Uups! But not to worry, that news is not longer high priority now that DWTS has started the new season. It looks like the fat lady can't sing, but maybe she can dance.
The bombing in Libya continues and Gaddifi continues to assure this supports that the Crusader Attack will soon be repelled and the enemy destroyed. It is expected that Portugal's government, led by a Minority party is about to fail..... unable to resolve financial problems. At the same time, Irish 10 year bond yields have pushed through 10% for the first time, as concern grows that a bankruptcy may be in the offing.
To top it all off, the nastiness in the Gaze Strip continues to heat up, with a bomb blast in Jerusalem that has injured at least 25 people, but no casualties currently reported. My guess is that this may be the cause of the spike in Oil prices we saw overnight.
Momentum Change indicators are still on Sell, but it is possible that a new Buy signal can be generated at any time. There are currently no open trades.
Best To Your Trading!
Bill
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