Major Markets
| S&P 500 (SPX) | -1.97% |
| Dow Jones Industrials (INDU) | -1.94% |
| Nasdaq Composite (COMP) | -2.31% |
| Russell 2000 (RUT) | -1.98% |
| 10yr Treasury Yield (TNX) | -1.31% |
| Dollar Index (/DX) | 0.30% |
| Oil (/QM) | -2.42% |
| Gold (/ZG) | 0.09% |
| Volatility Index (VIX) | 6.38% |
Top 3 Sectors Up
| Health Care (XLV) | -0.39% |
| Gaming (BJK) | -0.46% |
| Pharma (PPH) | -0.58% |
Top 3 Sectors Down
| Solar (TAN) | -4.87% |
| DJ Real Estate (IYR) | -4.68% |
| Broker Dealers (IAI) | -4.55% |
Futures were up this morning before reversing around 6:15 AM, almost similar to yesterday's price action when the futures reversed higher around 7:00 AM.
Yet again, it was crude that led the markets lower, and was a prelude to today's price weakness. Crude traded as high as 64.88 this morning, when a report came out that the CFTC is looking to curb speculative trading. This immediately had an adverse reaction in crude, as prices started going down. It is interesting to see what will come of this. What will the impact be of the ETF's that are used as vehicles, mainly by average investors?
Speaking of ETF's, UNG was halted today pending news, which was something to the effect that there isn't enough shares for new issuance.
It was interesting to see that the Nasdaq was the weakest. Google closed below 400. Microsoft was weak, as they warned about another security flaw in Internet Explorer (no fix yet).
Yesterday's hammer formation on the indexes were invalidated today with the lower closings. All indexes closed at, or close to their lows of the day:
The S&P 500 closed below its 200 day moving average. The Nasdaq closed below its 50 day moving average. The Russell 2000, broke the neckline, as mentioned in the weekly video. Keep an eye on 475, initial target, before a bounce back up to the neck line.
The treasury 3yr auction's bid-to-cover (demand) was so-so today. Yields were higher, I take it to entice purchases.
Prices did spike in early afternoon when Aloca's CEO stated on Bloomberg that he's "very optimistic" on China. He sees other sectors bottoming, even some improvement in the auto sector. What irks me here is that they are due to report earnings tomorrow. Why is he even talking ahead of it? Aren't they under a lock out period until the release? Come on.
There is talk of yet another stimulus plan, but was put down by Senate Majority Leader Harry Reid. He said that there is no need for another stimulus plan. This came around 3:00 PM, which caused an acceleration to declining prices.
Big day tomorrow:
- Weekly crude inventories will be released at 10:30 AM.
- The G8 will be meeting in Italy.
- Alcoa (AA) will kick off Q2 earnings AMC.
- There will be yet another auction (10yr), with results around 1:00 PM.
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