Morning Update: 2/9/2012

The stock market indices had a very good comeback in the afternoon after some early weakness. The day started out mostly to the upside, followed by a quick pullback, and then a rally to the session highs in the first 40 minutes, or so. They then rolled over hard, took out some support levels, and appeared to be in danger of a sharp sell-off today. They stabilized late morning, came on strongly and tested key overhead resistance, went through, and stair-stepped their way to the highs for the day going away.

Net on the day, the Dow, which just dipped into negative territory just before the close, managed to gain back 5.75 at 12,883.95. The S&P 500, which came 9 points off its low, and just a few pennies off its high, was up 2.91 to 1349.96. The Nasdaq 100 at 2545.72, just off its high, was up 13.66.

Advance-declines were 17 to 12 positive on the New York Stock Exchange, and 14 to 11 positive on Nasdaq. Up/down volume was 4 to 3 positive on New York, with total volume of 735 million shares traded today. Nasdaq traded over 1.9 billion shares today, and had a 2 to 1 positive volume ratio.

I had one trade yesterday 6E

6E was an initiative trade with a balance area at an extreme. The price did pull back around 35 pips and then retraced to test highs. Overnight in GLOBEX price reached STOP and trade was closed for a loss.

Economic08:30 Canada Dec New Housing Price Index08:30 US Initial/Continuing Jobless Claims08:30 USDA World Agricultural Supply and Demand Estimates 09:00 Mexico Dec Trade Balance (Final)09:00 Mexico Jan Consumer Prices10:00 US Dec Wholesale Inventories10:30 DoE Natural Gas Inventories13:00 US Treasury’s 30 Year Bond Auction

Looking for some type of consolidation at the highs or the start of a pull back ES tagged 1350 in GLOBEX a significant level indeed!


Olof Thomas


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