Bill Cara’s Blog for Feb 14, 2012
CTA Trading Desk Morning Report
[8:00am ET] Good morning, Geoff here.
Yesterday, stocks rallied on a Greek agreement that puts them a step closer to getting the funds they need to cut off the oncoming default.
After the close, Moody’s downgraded the sovereign debt ratings of the following EU countries: Austria, France, Italy, Malta, Portugal, Slovakia, Slovenia, Spain and the United Kingdom. The reason stated was “to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis…” Basically, too many things can go wrong for Moody’s not to downgrade. The euro and stock futures both got hit on the news but have since recovered.
This morning, traders are waiting on Retail Sales to see if consumer spending is indeed picking up. Business Inventories will also be released. Inventories tend to rise when the economy is strong. These two numbers may be market movers today if Europe doesn’t overshadow them (which is probably will).
I mentioned AAPL yesterday. It did breach $500 and we did sell a portion of our holdings in the stock as it goes full exponential. You can’t go broke taking gains, can you? FD; long AAPL.
Have a great trading day!
Here are the 7:00am ET snapshots of the latest equity market trading results for Europe, and futures prices plus 5-minute charts of the futures for S&P 500, 30-year US Treasury Bond, US Dollar index, Gold and Crude Oil.
|Symbol||Name||Last Trade||Change||Related Info|
||4.59 (0.21%)||Components, Chart, More|
||0.94 (0.04%)||Components, Chart, More|
||11.96 (0.35%)||Components, Chart, More|
||30.24 (0.45%)||Components, Chart, More|
||1.48 (0.46%)||Components, Chart, More|
|^OSEAX||OSE All Share||472.95
||0.68 (0.14%)||Components, Chart, More|
||1.50 (0.45%)||Components, Chart, More|
||4.23 (0.07%)||Components, Chart, More|
||6.70 (0.11%)||Components, Chart, More|
||2.30 (0.23%)||Chart, More|
||11.06 (1.23%)||Components, Chart, More|
||9.48 (0.61%)||Chart, More|
|GD.AT||Athex Composite Share Price Index||821.91
||12.50 (1.50%)||Chart, More|
The team will check in during the day, reporting in the Discourse when there is a new entry.
Enjoy your day.
Cara on Trends & Cycles
Vad’s Catch of the Day
Kaimu’s Sound Money
CTA Trading Desk Mid-Day Report
CTA Trading Desk Post-Close Report
Jeff Borsato’s Hidden Truth
It’s simple today gang:
Pull up a 1 year chart of the GLD with 14 and 7 RSI series.
Notice how both are ready to curl upwards.
If this week’s action follows through from where we sit right now ($1724 or so), the technical picture will look very good for gold bullion.
If this action takes place during continued strength in the USD, it will be an even stronger signal in my mind that we are ready to launch for the POG.
The USD appears strong, especially with daily reports of weakness in Europe. This won’t stop gold’s climb long-term but it will certainly put up a fight going forward.
I haven’t found gold reacting well to market weakness the past few years and would not expect new highs in gold while the market is crashing, the move to the USD is alive and well amidst the EU crisis.
and hope to see you all at the PDAC!