Bill Cara’s Blog for Mar 19, 2012
CTA Trading Desk Morning Report
[9:00am ET] Good morning, Geoff here.
As Bill noted in the Week in Review, the big story last week was the bond sell-off with money moving to equities. The market reacted positively to the bank stress-test and bank stocks were bought. Having confidence that banks are not going to implode could continue to lift stocks, but I continue to wonder how long stocks can rally with the dollar.
The dollar has lifted for a couple of weeks but now is short term toppy. As the dollar approaches the 81 – 82 level that has served as prior resistance, we shall see the true strength in the rally.
We like energy and are watching the dollar closely. Should the greenback turn lower here, we have a few energy, material and industrial names that we will add to or initiate positions in should their prices turn higher in response.
Regarding the Strategic Petroleum Reserve, I understand that the administration doesn’t want the price at the pump to slow the economy and hurt the reelection campaign but these types of efforts many times lead to higher prices, not lower.
Like I said, we like a few energy names that are down significantly over the last few weeks. Keep your eye on that sector.
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|
||5.48 (0.24%)||Components, Chart, More|
||0.31 (0.01%)||Components, Chart, More|
||25.75 (0.72%)||Components, Chart, More|
||48.95 (0.68%)||Components, Chart, More|
||2.72 (0.81%)||Components, Chart, More|
|^OSEAX||OSE All Share||492.49
||0.68 (0.14%)||Components, Chart, More|
||1.76 (0.50%)||Components, Chart, More|
||22.35 (0.35%)||Components, Chart, More|
||27.51 (0.46%)||Components, Chart, More|
||1.10 (0.11%)||Chart, More|
||30.84 (1.91%)||Chart, More|
|GD.AT||Athex Composite Share Price Index||770.53
||5.73 (0.75%)||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