Vacation

On vacation for the next week.

Wow- that was fast. Is something rotten in the state of Denmark?

Wow- that was fast. Is something rotten in the state of Denmark? Despite the euphoria following the announcement that Spanish would be bailed, the strong open on 6-11-12 was sold throughout the day. One day trading is more than likely just noise, but the trend is definitely down.

Short-term, the 1,330 level (or there around) seems to be an important technical resistance level. I note that the July 2011 sell-off after the end of the QE2 began in or around the 1,330 level and is marked by the last time heavy volume began to come into the market.

The oil market is also selling off, as shown in the short-term chart above. A war premium was probably built into the price earlier in 2012, as tensions with Iran escalated, but the recent sell off in oil follows the equity market and the drop off in money supply.

With heavy selling in the coal names, my portfolios traded down significantly in trading yesterday. I did not want to look at the final print. Traders and investors, at least at the open, look to use the decline to enter the market as futures are up marginally across the board. This may just be the market operators manipulating the price get out of positions or enter shorts at better prices.

Index Future	Future Date	Last	Net Change	Open	High	Low	Time
DJIA INDEX	Sep12	12,380.00	+70.00	12,320.00	12,397.00	12,309.00	06:59:49
S&P 500	Sep12	1,306.50	+6.20	1,300.60	1,309.10	1,297.90	07:00:32
NASDAQ 100	Sep12	2,524.00	+14.00	2,510.00	2,528.25	2,507.00	06:59:50

6-11-12 Premarket Open

Futures are up following this weekends announcement that Spanish bank would get Euro100 billion credit line from the European Union. Although futures are positive, I would have thought they would indicate a more positive open.

Stock Futures

Americas

Index Future	Future Date	Last	Net Change	Open	High	Low	Time
DJIA INDEX	Sep12	12,552.00	+49.00	12,628.00	12,672.00	12,548.00	08:39:02
S&P 500	Sep12	1,326.20	+4.20	1,332.10	1,341.90	1,325.70	08:38:57
NASDAQ 100	Sep12	2,566.50	+9.50	2,589.00	2,597.00	2,564.50	08:39:02

The market looks to be at a resistance point. The SPY is likely to open up this morning and may move to the 50d MA. Volume has been light to the upside and sellers may come in between $134 and $136 level.

The dollar is weaker as the Euro strengthens. The dollar may consolidate, but continues to look strong.

 Pre-open, the GLD is up marginally, but has flipped-flopped between green and red, confirming the indecision of investors/traders in my opinion. While the SLV is trading more positively. Remain positive on coal stocks for a long-term investment, but sitting in losses on the trades.