Watch that 877. on the upside it needs to break on the third push to send us to our first 988 target
Wednesday, July 29, 2009
S&P 500 Analysis
We barely did much today as the ES had a narrow range of around 12 points and volume was below yesterday's. Obviously we are forming a triangle here in a consolidation pattern and it probably resolve itself higher when it breaks.
Watch that 877. on the upside it needs to break on the third push to send us to our first 988 target
Watch that 877. on the upside it needs to break on the third push to send us to our first 988 target
Crude
Well Crude got hit with heavy selling today and yes some of it was the EIA numbers but most of it was technical. Today volume was heavy, actually today's volume was the most in 11 weeks.
It seems we have some more room on the downside and if I am correct on the structure of this we should be looking at the 62.40 area as some stronger support. Below that 61.35, which coincides with the 261.8 Fibonacci extension off the 68.9 Highs.
It seems we have some more room on the downside and if I am correct on the structure of this we should be looking at the 62.40 area as some stronger support. Below that 61.35, which coincides with the 261.8 Fibonacci extension off the 68.9 Highs.
Bill Gross- Follow the money
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., reduced holdings of mortgage debt last month and added to cash and equivalent securities.
Gross cut the $161 billion Total Return Fund’s investment in mortgage bonds to 54 percent of assets, the lowest in almost two years, from 61 percent in May, according to a report on Pimco’s Web site. Gross trimmed holdings of government-related bonds to 24 percent of assets, the least since February, from 25 percent.
In an investment outlook published earlier this month, Gross said investors should look for “secure income” offered by bonds and dividend-paying stocks. “The outlook for risk assets -- stocks, high-yield bonds, and commercial and residential real estate will involve just that -- risk,” he said in the July 1 report.
The Total Return Fund returned 10.9 percent in the past year, beating 97 percent of its peers, according to data compiled by Bloomberg.
Gross cut the $161 billion Total Return Fund’s investment in mortgage bonds to 54 percent of assets, the lowest in almost two years, from 61 percent in May, according to a report on Pimco’s Web site. Gross trimmed holdings of government-related bonds to 24 percent of assets, the least since February, from 25 percent.
In an investment outlook published earlier this month, Gross said investors should look for “secure income” offered by bonds and dividend-paying stocks. “The outlook for risk assets -- stocks, high-yield bonds, and commercial and residential real estate will involve just that -- risk,” he said in the July 1 report.
The Total Return Fund returned 10.9 percent in the past year, beating 97 percent of its peers, according to data compiled by Bloomberg.
CRUDE-BINGO!!! 62.75
Can I say BINGO AGAIN- called that 62.75, we hit 62.70, all out +$5 nice swing there and technically excellent trade was never in a danger of being stopped.
BINGO-
MARKETJEDI
BINGO-
MARKETJEDI
Troubling Trend
There is troubling trend in the global markets towards US investments. Last week the Associated Press reports that "Foreign demand for the Long Term U.S. finanaical assets dropped by the largest amount in four months in May, as Japan and Russia trimmed their holdings of Treasury securities. Foreigners actually sold $19.8 Billion more long-term U.S. securities than they purchased in May, compare the net purchases of $11.5 Billion in April.
This is definitely a serious trend with such a drop in foreign investible funds for meeting the U.S. borrowing needs. The FED has definitely seen the danger and that was the reason they went into the market to buy these securities in an attempt to bring back some confidence in the international market towards U.S. securities.
My thesis of this selling is China's selling of U.S. assets to fund their stimulus and growth agenda to be at the forefront when the global economy start to return to growth.
It is funny how the pundits in the media are saying buy stocks BUT yet they saying growth will take awhile to return. I think they know what is happening they see the cash rich nation slowing and in some cases like China dumping treasuries on the market which have them very nervous.
This is definitely a serious trend with such a drop in foreign investible funds for meeting the U.S. borrowing needs. The FED has definitely seen the danger and that was the reason they went into the market to buy these securities in an attempt to bring back some confidence in the international market towards U.S. securities.
My thesis of this selling is China's selling of U.S. assets to fund their stimulus and growth agenda to be at the forefront when the global economy start to return to growth.
It is funny how the pundits in the media are saying buy stocks BUT yet they saying growth will take awhile to return. I think they know what is happening they see the cash rich nation slowing and in some cases like China dumping treasuries on the market which have them very nervous.
WOW-Crude
Wow crude went down to 63.04, man oh man just crushed. I am surprised it stopped at that number because that number didn't come up in my work. I am looking for 62.75 area.
MARKETJEDI
MARKETJEDI
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