Around the Globe
- Asia – CLOSED
- Shanghai (China) -1.74%
- Hang Seng (Hong Kong) +0.15%
- Nikkei (Japan)+0.05%
Europe as of 5:57am EDT
- DAX (Germany) -0.21%
- FTSE (UK) -0.25%
Today’s Economic News:
Slow news day today. The empire index at 8:30am should be a mover and business inventories at 10am. We like the inflation numbers out of Europe and the better than expected trade balance.
Quote of the day:
Dance like it hurts, love like you need money, work when people are watching. – Scott Adams
Current Allocations from our room:
Performance Month to Date from our room:
Current Breadth Readings:
Since we have ourselves into a little bit of a bearish outlook over the next couple of weeks, we thought showing the strongest of the breadth charts (that is the one that remains most bullish) would be a good counter balance this morning. This is the new high / new low ratio. We want this to remain above 40 to keep the uptrend solid. That has happened. So the bulls need to get this reading back up into the 90s to be convincing for the upside. A move now below 55 will have us confirmed on the downside call.
ES SP500 Futures Comments:
We had 1348 on Friday as an intermediate top. It got there in about 15 minutes which had us worried. We did travel some higher, but we like this area or 1366 for upside failure. Our long area for today sits at 1312. Friday’s range was big so that pushed the long area way down. If you remain bullish during OPEX, then 1345 is a reasonable place to look to get more long or to start a short long position. We are anxious to watch the follow-through to Friday’s very strong thrust day. The follow-through should tell us quite a bit about what the market in general is thinking.
We still think those 1325 prints were low enough to tell us that buyers are not sufficient in numbers yet to drive the markets to new heights. That, of course, could change between the newsmakers, the fed, and earnings, but for now we are looking to fall short of 1375 and to revisit the 1300 or lower area. That is a 100% change of outlook from last week where we were calling for 1392. Last Thursday changed our minds.
US Dollar DX Futures Comments:
TLT Twenty Year Bond ETF Comments:
TLT has a main role in our pessimism for the next couple of weeks. As long as this remains at record highs, we think that markets will have a hard time scoring new highs. We still have an upside target in that 130.50 area.
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