Monday, May 21, 2012

Monday Evening

S&P futures rallied right up to resistance this afternoon. The bulls have some heavy lifting to do, but did a good job of keeping a bid under the market today. The futures just closed at about 1316... and normally when we see the futures close near the HOD, we see some follow through in the night session. 1320ish is the next level up for potential resistance, assuming the bulls can hold onto the 1314 level.

In the short term (1-2days), we have a few technical indicators starting to look ripe for selling. In the medium to longer term (1 week-2months), we are set up pretty well for more upside. I'm guessing the action will continue to be sensitive to news flow as the bulls and bears battle it out.

Monday afternoon

Better to be out, wishing you were in
Than in, wishing you were out.

Monday Morning



Well Good Morning Everyone..As you slept, We had the Asian markets up (except for the Hang Seng) over comments from the China Govt that it could act more to spur growth. (The Flash PMI data comes out on Thursday for China and Europe fwiw, which may not be so good?) Over the weekend we had the G8 meeting which had no European plan in it, BUT agreement about providing supply of Oil if Iranian Sanctions take place (releasing the strategic reserves). The G8 comments brings us to our Topic of the Day, Will the KEY SUPPORT for Oil hold? It is bouncing off of it tonight. I am watching the 90.50 level for oil. Saudi Arabia pumped way too much oil expecting a shortage due to Iran Sanctions. China and the world is slowing and well, Iran meets with global leaders on Wednesday and at this point the gossip is that they are going to continue to behave to make sure that the July sanctions don't go into place. If the Brent "Risk" comes out of the market (its been falling since the last Iran Meeting), then support could be taken out when panic hits when everyone realizes that a glut of oil that has been pumped, heck even Iran over produced oil. Just something to watch. Goldman is out saying inventories could be in short supply and Russia is talking about Iran going to War. IMHO I raise an eyebrow to both GS and Russia with a possible very bias interest for those comments.

German/French EU Finance leaders are meeting to talk tonight, all the EU Finance Ministers meet on Wednesday. Bank of Japan starts their two day rate meeting tomorrow night and talk about that there is possible stimulus to lower the Yen, (which raises our dollar). During the Asian Session we had the eur/usd touch 1.2800 but it is pulling back. Oil in the Europe session is at 91.77. Canada is closed for holiday and we really only get FOMC Lockhart speaking tomorrow...and of course Gator's Birthday!