Morning Update: 6/7/2012

The stock market indices had an exceptional up-day today with very strong technicals. The only thing missing was volume, but some indulgence took care of that.

The day started out with strong overnight futures, they gapped up above the moving averages on the hourly charts, and ran sharply higher in the morning until mid-day when they backed off to retest. That was successful. They bounced around and pulled back one more time, forming wedges, until late in the day when they exploded in the last 20-25 minutes, and then ran into the highs for the day going away.

It was a spectacular day for the indices.

Stepping back and reviewing the hourly chart patterns, the indices gapped up and ran hard until mid-day, and then backed off and consolidated in the afternoon only to explode in the last half hour to close at the highs for the day going away.

It was a spectacular session for the indices, indeed, taking out the major declining topsline on the S&P 500 at the close. A significant day perhaps, we shall see.

 

Trades Today:

GC… This was “Top Setup” in which a minor degree or major degree balance area forms and price drops below and struggles to get back above the lower extreme. Sold in 1/3’s with a total profit of $20 on a small allocation trade. +$20

FDAX… minor degree balance area forming at the upper extreme of a major degree balance area took the initiative trade at 6075 and sold at 6134 +59 points

6E… minor degree balance area SHORT for a small loss. -20 pips

 

 
Thursday, June 7

Economics
08:30 Initial Jobless Claims – consensus 380K, prior 383K
08:30 Continuing Claims – consensus 3238K, prior 3242K
3:00 Consumer Credit – consensus $10.30B, prior $21.35B
01:30 AUD Employment Change
05:00 JPY Leading Index
05:45 CHF Unemployment Rate
07:15 CHF CPI
11:00 GBP BOE Asset Purchase Target
11:00 GBP BOE Rate Decision
23:50 JPY GDP
France and Spain selling bonds

Earnings
Before:
Anheuser-Busch Inbev (BUD) EPS 91c, revs $9.30B
J.M. Smucker (SJM) EPS 98c, revs $1.35B
Lululemon (LULU) EPS 30c, revs $272.95M
UTI Worlwide (UTIW) EPS 16c, revs $1.24B
After:
No major earnings

Oil inventories dropped 100,000 barrels. Last week they rose 2.2 million. On Thursday we will get initial claims.

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