Those old instructions for Monopoly is how I feel after last Fridays' blow out. Please review yesterdays post... and remember that trading is a hands on endeavor. I was able to pull my stops before the open, and then to get out on the late morning/early afternoon rally. Unfortunately, I do not have a mechanism that allows me offer that suggestion prior to the opening of the market.
Today the Econ calendar is pretty bare, with the only media attention on The Bernak's speech this afternoon. The financial press is pretty much focused today on the proposed 37th bailout of the Greek debt, with the rating agencies threatening to consider another bailout to be a credit event... ie: a default. In addition, the folks in Greece in charge of the debt seem to be on another page as their responses to the ECB proposal seem to be at odds with the statements out of the ECB. Photos and video out of Greece demonstrate a very unhappy population, while elections around the EEU are telling the various elected officials that the voters are not going to tolerate further extensions of credit to Sovereign nations at the expense of the tax payers in the supporting nations.
There are also reports out of Japan that the Nuke accident was orders of magnitude greater that first reported, and indications that all three of the online reactors at the time of the tsunami have completely melted down. In addition, Plutonium has actually been found in a town over 1 mile from the Nuclear site. It is the actual particles of nuclear material that poses the greatest threat.
There is an excellent deconstruction of the recent Zillow report on residential real estate, and a review of the Owner/Equity of mortgaged homes nationally this morning at Zerohedge. It is worth the 4 minute read. In addition, Charles Hugh Smith at Of Two Minds has an excellent report on Education in the U.S. It is an excellent review of current status of education process that does not get bogged down in religious dog-whistles attacking Science and promoting public funds for private religious education.
After trading higher overnight, the market opened with a small gap higher, and is currently trading up 65 Dow Points. The SPX is up 0.55% at 1293.18 and the rest of the major indexes are also higher with the Russell leading the way, up 0.85% Oil is soft this morning, trading off a few ticks at 98.71, while Brent is nearly 1% higher at 115.59 This is the largest spread in the WTC and Brent for several months. Gold is higher 80 cents at 1547.30 and Silver is higher 18cents at 36.95. Copper is again trading lower at 4.141. The soft commodities are mixed, with Cotton leading the decliners, down over 3% at 150.75.
The Euro continues to march higher, trading 0.75% higher at 1.466. while the dollar is getting hit, down nearly 0.50% at 73.61. The Jen continues strong, trading at 80.19. The Bond market is again giving back some of its gains, the the Note again trading above 3 at 3.04%, and the Bond higher, trading at 4.291%
Please note the Momentum Change signals for a series of major indexes. The abrupt change last week completely demolished the remaining pieces of the Momentum Change indicators for the equities indexes, moving completely through a Buy/Sell cycle with out getting the Sell signal. The Momentum Change indicators are near levels where they can generate a new Buy signal at any time, yet are not any place near a sell signal, having completely missed the sell. This is why it is so important to use stop loss orders to protect a trading position.
Best To Your Trading!
Bill
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