Bill Cara’s Blog for Jul 15, 2011 [See Post-Close report]
CTA Trading Desk Morning Report
[7:00am ET] Good morning.
While there is a focus on the money center banks in Europe today, the trading bias, while a tad bearish, is not yet decided. All eyes seem now to be switched back to Washington and the heated debate over the debt ceiling legislation.
The miners in London had a tough start to the session this morning, but goldminer African Barrick, at least, is headed in the right direction.
The GLD (gold bullion trust – in blue in the chart below) is still outperforming the goldminers (GDX) over the past six months, but over the past three weeks, the miners are quickly catching up. With a debt ceiling plan in place, likely to come in the next two weeks, it’s probably the case that GDX and GLD will sell off a bit.
The World Gold Council released their July 2011 data on the gold holdings of each country. Here is the top 100:
Embattled media baron Rupert Murdoch may be “just getting annoyed” at all the recent negative press, but his UK CEO resigned today and his newspapers are starting to run apologies to the British people. It seems to me that Murdoch has bigger fish to fry in the US now that the FBI is beginning a US investigation into possible phone hacking there. If discovered, he will be headed straight to prison with a lifetime sentence. This situation is shaping up to be much bigger than WikiLeaks. If sent to prison, can you possibly imagine how much poop on the elite class that Murdoch would be prepared to disclose?
Sounds like a popular movie to be released this summer.
Have a good 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|
||23.00 (0.87%)||Components, Chart, More|
||9.22 (0.38%)||Components, Chart, More|
||17.53 (0.47%)||Components, Chart, More|
||28.10 (0.39%)||Components, Chart, More|
||0.62 (0.19%)||Components, Chart, More|
|^OSEAX||OSE All Share||463.41
||0.87 (0.19%)||Components, Chart, More|
|^SMSI||Madrid General||N/A||0.00 (0.00%)||Chart, More|
||3.39 (0.98%)||Components, Chart, More|
||45.65 (0.76%)||Components, Chart, More|
||4.00 (0.07%)||Components, 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
Good evening. Patrick here.
Staggered by a week of intense pummeling the wobbly Bull staggered over to his corner, hoping to shake off the cobwebs and return for the 15th and final round of this heavyweight championship bout.
The Bulls successfully defended – at least thus far – the 50% retracement (appox. 1306) of the recent rally, prices turning up strongly in the last 30 minutes of trading and closing near session highs (S&P+0.56%).
In an uptrend equities begrudgingly give ground; corrections respecting 50% retracement levels are the types of stocks traders should look to buy on dips. This one simple rule can keep can keep on the right side of a trade; stocks making higher highs and higher lows never giving back more than half of their gains in any given swing are the stocks you want to own.
The equity market took a lot of body blows all week, amazingly closing more than 1% below intraday highs in four consecutive sessions. O Bag of Wind and the Bearded One were front and center for days on end, economic woes, worsening employment numbers, bickering on Capital Hill over budget cuts and spending, and the European sovereign debt situation dominating the nightly news.
A market holding support in the face of bad news; if the S&P closes back above 1320 the Bulls may have dodged another bullet.
Have a great weekend.