Morning Update: 6/20/2012

 

 

The stock market indices had a very strong morning with breakaway gaps on strong run-ups until late morning when they backed off. But they came on again strongly into the early afternoon, and reached their session highs in overbought territory close to key resistance on the S&P 500, near 1355 and on the Nasdaq 100 near 2630. At that point, we warned our subscribers that they should see an afternoon sell-off, and we did get that. The NDX went from 2631 to 2618, and the S&P 500 dropped 1363 1/2 to 1357. They bounced, and backed off to retest the afternoon lows there.  Net of the day, the Dow was up 95.51 at 12,837.33, about 60 points off its high, the S&P 500 was up 13.20 at 1357.97, only 6 points off its high, and the Nasdaq 100 up 28.31 at 2620.83, 10 points off the high.  Stepping back and reviewing the hourly chart patterns, the indices were up sharply in the morning, extended to early afternoon, and backed off in the afternoon to back and fill, but held support, and closed with solid gains with good technical s on the day.

Let’s see what happens tomorrow.

 

Instrument Strategy Market pos. Quantity Entry price Exit price Profit
6C 09-12 Initiative Trade Balance Extreme Short 3 0.9805 0.9806 -43.5
ES 09-12 Initiative Trade Balance Extreme Long 1 1350.5 1350.75 8
ES 09-12 Initiative Trade Balance Extreme Long 1 1339.75 1350.75 545.5
ES 09-12 Initiative Trade Balance Extreme Long 1 1339.75 1350.75 545.5
ES 09-12 Initiative Trade Balance Extreme Long 1 1339.75 1350.75 545.5
6C 09-12 Initiative Trade Balance Extreme Short 1 0.981 0.981 -4.5
6C 09-12 Initiative Trade Balance Extreme Short 3 0.981 0.981 -13.5
GC 08-12 Short 1 1623.7 1624.4 -74.5
GC 08-12 Short 2 1623.7 1624.4 -149
GC 08-12 Short 1 1623.7 1624.4 -74.5
GC 08-12 Short 1 1623.5 1623.5 -4.5
GC 08-12 Short 1 1623.5 1623.4 5.5

 

Wednesday, June 20

Economics
07:00 MBA Mortgage Purchase Index
12:30 FOMC Rate Decision
2:00 FOMC Bernanke Press Conference
01:30 AUD Dwelling Starts
04:30 JPY All Industry Activity Index
06:00 EUR German Producer Prices
08:30 GBP BoE Minutes
08:30 GBP Jobless Claims Change
09:00 CHF ZEW Economic Survey Expectations
22:45 NZD GDP
11:30 Germany to sell 2-yr notes

Earnings
Before:
No major reports
After:
Bed Bath & Beyond (BBBY) EPS 84c, revs $2.24B
Micron (MU) EPS -19c, revs $2.02B

Housing starts were 708,000, lower than the expected 720,000. On Wednesday we will get oil inventories and the FOMC announcement.

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