Well that was disappointing!
We had a good start but declining energy and commodity stocks dragged down the markets. The Dow fell back from 13,550 despite a good run in the transports, who were thrilled with the $2 drop in oil (and 5% drop in gasoline).
Kudos to Rockaintdeadyet for identifying today's daily double as he caught the change in China's stock trading stamp duty at 1:26, leading me to call for the FXI $109 puts at $2.55, which haven't doubled yet but will tomorrow! Another member who was on the ball yesterday was Msquare who's prescient 12:04 comment was: "Something doesn’t ‘feel right’ about today’s rally – May be one of those afternoon sell off days? e.g. Many stocks I track (non-Energy) like EWZ, Indian ETFs etc. started day very strong but seem to be fading now…" Great job guys!
That pretty much summed up the day, we saw little to buy and no reason to lift our protections although we did load up on some more oil puts as energy stocks made a silly run in the morning but, on the whole, it was a very mediocre day:
|
|
|
Day’s |
Must |
Comfort |
Break |
Next |
|
Index |
Current |
Move |
Hold |
Zone |
Out |
Goal |
|
13,521 |
14 |
12,468 |
12,600 |
13,000 |
13,500 |
|
|
2,912 |
31 |
2,825 |
2,900 |
3,000 |
3,250 |
|
|
1,518 |
2 |
1,430 |
1,460 |
1,500 |
1,550 |
|
|
9,892 |
16 |
9,218 |
9,465 |
9,600 |
10,000 |
|
|
2,572 |
14 |
2,454 |
2,500 |
2,600 |
2,750 |
|
|
483 |
2 |
477 |
490 |
500 |
560 |
|
|
837 |
7 |
803 |
820 |
850 |
900 |
You would think we would be happier after adding a green to the Dow and the Transports but we had a huge rejection of the S&P at 1,520 and the Nasdaq again had trouble at 2,575 and the NYSE got rejected at 9,900 and the SOX were rejected at 485… Not what we were really looking for on "Take-Off Tuesday" but that's why I had 3 question marks.
NYMEX shenanigans never end as traders there desperately took July crude off the floor in the last 20 minutes of trading to peg the close .15 above $63. We knew the pump was on at 2:07 when CNBC capped a ridiculous spot on oil with their perma-bull, causing me to comment: "Eric Bolling crying hurricane on CNBC and his voice is sore from screaming sell all morning! Both their bull and their “bear” end up strongly endorsing buying refiners." Really guys, if you need a real oil bear to come on TV, Z and I are available anytime!
Don't blame the dollar for oil's woes, it flatlined at 82.05 but gold barely budged at $656 so there's a whole lot of nothin' going on today. Perhaps just the calm before the storm???
